- Trump’s sweeping tariffs triggered sharp declines in Bitcoin and major cryptocurrencies.
- Market fear surged, but institutional accumulation suggests Bitcoin’s long-term resilience.
The cryptocurrency market experienced a sharp downturn after U.S. President Donald Trump declared sweeping tariffs on global trade partners.
On the 2nd of April, Trump unveiled a 10% blanket tariff on all countries, with higher rates imposed on nations like China, the European Union, and Japan.
His White House remarks emphasized the goal of rebalancing trade dynamics, but the announcement caused immediate market volatility.
How did Trump’s tariff impact the crypto market?
The crypto market initially surged following the announcement of a 10% sweeping tariff, but quickly reversed course as investors grasped the broader economic implications.
At press time, Bitcoin [BTC], which had briefly touched $88,500, dropped by 2.6% to reach $82,876. Meanwhile, Ethereum [ETH] saw a sharp 6% decline, falling from $1,934 to $1,797.
The total crypto market cap sunk by 5.3% to $2.7 trillion, accompanied by a spike in market fear—reflected in the Crypto Fear & Greed Index plunging to an “extreme fear” rating of 25.
Adding to the turmoil, spot Bitcoin ETFs recorded a $157.8 million outflow, with Ethereum ETFs seeing a $3.6 million withdrawal amid concerns over trade war escalation.
However, on the 2nd of April, BTC ETFs saw $218.1 million in inflows, while ETH ETFs faced $51.3 million in outflows as per Farside Investors.
While BTC and ETH have since regained some ground, broader market sentiment remains fragile, with risk assets—including equities—experiencing similar turbulence, as the S&P 500 wiped out over $2 trillion in market cap.
Secretary Bessent and others react to Trump’s tariff plan
U.S. Treasury Secretary Scott Bessent sought to calm market jitters, cautioning U.S. trading partners against retaliatory tariffs in response to the sweeping trade measures.
In an interview with Bloomberg, Bessent emphasized that the newly imposed tariffs represent the “high end” of the scale, suggesting that refraining from countermeasures could provide a “ceiling” and much-needed certainty for global markets.
His remarks aimed to prevent an escalating tariff war, which could further destabilize financial markets already reacting to heightened economic uncertainty.
On the other hand, Daan Crypto Trades said,
Source: Daan Crypto Trades/X
In fact, Arthur Hayes, co-founder of the BitMEX crypto exchange, also noted,
“Mrkt no likey “Liberation Day”, if $BTC can hold $76.5k btw now and US tax day Apr 15, then we are out of the woods. Don’t get chopped up!”
What lies ahead?
However, despite the tariff shock, on-chain data highlights steady institutional accumulation, while technical patterns signal underlying strength rather than sustained decline.
Growing political support for digital assets and macroeconomic changes could strengthen Bitcoin’s role as a hedge.
This reinforces Bitcoin’s importance during times of traditional market instability, positioning it as a valuable asset in uncertain conditions.
