BTC, now $83,273.20, is still topping the charts in the crypto markets. However, the stablecoin took a sharp 4% dip and hit a recent low of $82,000 early this morning.
The nosedive is not worrying investors as much as policies driving the rampant price drops. At the beginning of 2025, President Trump introduced some aggressive tariff policies, which backfired almost immediately.
The US imposed major tariffs on imports from neighbours like Mexico and Canada. Meanwhile, new imports from China will attract a 34% higher tariff. The status of global trade has become hostile after the unexpected announcement.
A Bloomberg Report initially depicted that digital assets like Bitcoin and other crypto wouldn’t be much affected by this trade dismay. But that didn’t turn out to be true.
How Bad Was The Fall?
Bitcoin was the worst hit by the mammoth price crash. Throughout February and March, BTC held on to the resistance level of $86,000. However, the resistance band broke at the advent of April.
In addition, popular currencies like Ethereum and XRP also suffered similar fates. ETH’s value dropped 2.96% ($1,822.09), and XRP’s price was slashed by 2.21% ($2.05). Solna’s position also plummeted when the crash affected coins universally. However, SLNA is faring better now.
What Actually Happened?
The lion’s share of the investor market is blaming President Trump’s recent policies for the crypto market disaster. The last nail in the coffin was an unexpected announcement from the President’s office that came in on Wednesday.
“10% tariffs on all exporters.”
The moment when the statement flew in, the crypto market started flaunting a visible dip. John Wu, from Ava Labs, clarified that
“Crypto is a risk-on asset. Hence, it is only natural that it would be poorly traded in a period of global fiscal uncertainty.”
What’s The Next Move for Investors?
The investors’ market is baffled, no doubt. But people with diverse portfolios need to worry less. If you have incorporated gold in your stock profile, you shouldn’t be as worried.
Gold ($3,160) and other metals are scoring all-time highs. However, investors also feel that the crypto market will soon be back on track. The first quarter of FY 2025-26 would be crucial!
