Bitcoin and other major cryptocurrencies saw a sharp drop in value after US President Donald Trump announced new tariffs.
Details of the Tariff Policy
US President Donald Trump announced a 10% tariff on all exporters to the US, with additional duties affecting around 60 countries. China faces a 34% tariff, the European Union 20%, India 26%, and Japan 24%.
Impact on Cryptocurrency Market
Initially, cryptocurrencies held their positions but started to decline when Asian trading floors opened. Bitcoin fell by 7% to approximately $82,000, and other altcoins such as Ether, XRP, and Solana also decreased in value. Solana, for instance, dropped in value by more than 9%.
Expert Opinions
According to John Wu, the president of Ava Labs, cryptocurrencies are considered risk-on assets and are not suited for risk-off periods like high interest rates or tariffs. DYOR CEO Ben Kurland stated that the market impact is more about the return of policy volatility rather than the tariffs themselves. Meanwhile, BTC Markets analyst Rachael Lucas suggested the future of Bitcoin largely depends on geopolitical and policy changes, as well as trader perceptions of whether it is a safe-haven or risky asset.
The fluctuations in cryptocurrency prices following tariff announcements highlight their vulnerability to political and economic instability. Experts differ on the future of Bitcoin as a safe asset.
