Over the weekend, Bitcoin and Ethereum faced significant losses triggered by new tariffs signed by President Donald Trump. These events shook financial markets, causing a notable downturn in cryptocurrencies.
Bitcoin and Ethereum Under Market Pressure
Bitcoin clawed back to $98,000 from a harsh three-week low of $91,441 after a weekend plummet. At press time, it stabilized at $97,730, still marking a 6.2% drop on the day. Ether has plunged by 25% since Friday and sat at $2,592 at press time. Meanwhile, MicroStrategy, known as a major corporate Bitcoin whale, paused its BTC acquisition strategy for the first time in three months, as confirmed by CEO Michael Saylor.
Trump's Tariffs and Market Reaction
The global markets reacted to Trump's announcement of tariffs targeting Mexico, Canada, and China immediately. Bitcoin, already under pressure, spiraled. More than a quarter of the top 100 cryptocurrencies lost 20% or more within 24 hours. Frustration is mounting among crypto traders over the absence of the promised pro-crypto policies since Trump's inauguration, despite a crypto working group being ordered.
Meme Coins and UK Exemption
Meme coins were among the hardest hit by the market downturn, dropping sharply after the postelection rally. Trump's own meme coin, launched two weeks ago, fell 15%. Countries like the UK avoided tariff implications although Trump criticized its leadership, while diplomatic efforts continue to mend relations with the European Union.
Despite a partial recovery of Bitcoin, the cryptocurrency market remains under pressure. Ongoing global economic instability continues to influence the status of cryptocurrencies and investors.
