Global financial markets and the cryptocurrency sector experienced a sharp decline following Donald Trump's announcement of reciprocal tariffs.
Market Reaction
Market analyst The Kobeissi Letter described the events as "truly insane to watch," noting that markets reversed violently when Trump announced the tariffs. The S&P 500 lost over $2 trillion in market capitalization within 15 minutes, and Nasdaq 100 futures swung nearly 900 points before closing off session lows. The broader crypto market fell 3.6% in the past 24 hours, with the GMCI 30 index dropping 4.6%, and Bitcoin fell 2.3% to $83,200.
Altcoin and Trump Memecoin Plunge
Altcoins saw steeper losses, with Ethereum dropping over 6% to below $1,800, Solana down 6.5% to $118, and major cryptocurrencies like Dogecoin (-6.2%), XRP (-5.5%), BNB (-3.7%), Cardano (-5.8%), and Tron (-2%) all suffering declines. The Official Trump memecoin notably fell over 12%, dropping below $10.
Impact of Tariffs on Crypto and Bitcoin Mining
The crypto sector, especially Bitcoin mining, is expected to feel the effects of Trump's tariff policy. The hardest hit will be companies using ASIC chips from China. However, some U.S.-based companies may avoid the impact by sourcing equipment from outside China. Higher prices for hardware in the U.S. may push out less efficient miners, potentially improving profitability for those with lower operational costs.
Trump's new tariff announcement has caused significant concern in financial markets and a drop in cryptocurrencies. Experts are discussing potential implications for the mining industry and investors amid economic uncertainty.
