Bitcoin, broader crypto market slump as Trump unveils unprecedented tariff package
The crypto market has lost 6% of its total market cap within the last 24 hours as President Trump’s announcement of Bitcoin has fallen 6% to $81,000 within the last 24 hours following Trump's White House speech on Wednesday during which he announced a plan for sprawling new tariffs on foreign imports. Cryptocurrencies other than Bitcoin have been hit harder by the news, with Ethereum falling 7%, Solana falling 13%, and XRP falling 8%.
The overall value of the entire crypto market has tumbled $160 billion in the last 24 hours, from $2.78 trillion to $2.62 trillion.
The crypto market slump comes as Trump announced a complex package of tariffs targeting a list of nations ranging from China to Madagascar. The package includes a 10% baseline tariff on all foreign goods and a 25% tariff on all foreign-made cars. The president also announced country and region-specific levies including a 20% tariff on the European Union and a 46% tariff on Vietnam.
“Trump’s new tariffs are injecting fresh uncertainty into global markets, and crypto is no exception,” Nicholas Roberts-Huntley, CEO of crypto lending and borrowing company Concrete, told Fortune.
While many think the tariffs are a temporary play by the Trump administration to gain negotiating leverage with other countries, the policy is expected to dramatically increase the price of foreign goods in the U.S., raising concerns among Americans about inflation and a potential recession. The economic uncertainty has spread far beyond the crypto market with both the Dow Jones and S&P 500 falling more than 3% on Thursday as investors fear economic slowdown.
Crypto has been hit harder than most financial markets because investors view digital assets as more risky than stocks and other traditional investments. Roberts-Huntley called crypto “especially reactive” in times of uncertainty.
The new tariffs are a significant expansion of previous tariffs Trump imposed—and partially rolled back—in recent weeks, aimed at China, Mexico, and Canada in an attempt to force these countries to the negotiating table. Trump previously stated that some of these initial tariffs would be eliminated if the countries fulfilled certain requirements, including working with the U.S. to stop the flow of fentanyl across the border.
Thursday’s sell-off is a continuation of a crypto market slump that began in December when the Federal Reserve announced it would make fewer-than-expected interest rate cuts in 2025. Trump’s aggressive tariffs have added to the downturn, leading Bitcoin to tumble from an all-time high of $109,000 in January to $78,000 in March.
This story was originally featured on Fortune.com