Bitcoin and Crypto Markets Shake After Donald Trump's Tax Decision

The cryptocurrency market has just experienced a strong shock after U.S. President Donald Trump announced a new tariff policy, causing significant volatility in risky assets. This move not only impacted U.S. stocks but also caused Bitcoin and numerous altcoins to plummet.

Bitcoin Plummets, Cryptocurrency Market Turns Red

Immediately after President Trump announced import tariffs ranging from 10% to 50% for 185 countries globally, Bitcoin dropped sharply by 4%, falling to $82,000. Ethereum, XRP, and Solana were also not spared from this correction, with Solana losing over 9% of its value at the same time.

According to data from Coinglass, the total liquidation of futures contracts in the past 24 hours reached $491.74 million, with Bitcoin alone accounting for $182.37 million. This decline reflects investors' risk-averse sentiment in the face of volatility from U.S. trade policies.

Trump's Tariffs and Impact on Financial Markets

During the Make America Wealthy Again event at the White House on February 12, President Trump officially signed an order applying a 10% import tariff to all countries, simultaneously implementing reciprocal tariffs based on each country's tariffs on the U.S. Some heavily affected countries include:

• China: 34% (total 54% including previous 20%)

• Japan: 24%

• South Korea: 25%

• EU: 20%

• Vietnam: 46%

LIBERATION DAY RECIPROCAL TARIFFS 🇺🇸 pic.twitter.com/ODckbUWKvO

— The White House (@WhiteHouse) April 2, 2025

The basic 10% tariff will take effect from April 5, while reciprocal tariffs will be applied from April 9. This decision immediately shocked financial markets. The S&P 500 dropped 3.7%, wiping out $2 trillion in market capitalization, while gold prices soared to a record $3,150/oz.

How Are Financial and Cryptocurrency Communities Reacting?

The U.S. tariffs not only shook the cryptocurrency market but also triggered strong reactions from many countries:

• Australia: Prime Minister Anthony Albanese declared no tariff retaliation but warned that this action would cause global economic instability and that U.S. citizens would suffer the consequences.

• Ireland: The country's Foreign Minister expressed regret and concern over Trump's new trade policy.

• Brazil: President Lula da Silva announced he would take retaliatory measures but fears the U.S. might further increase tariffs from 10% to 28%.

• Denmark: The Ministry of Foreign Affairs strongly criticized the U.S. decision, stating that it damages global trade.

• Italy: The Italian government emphasized the need to avoid a trade war and is coordinating with EU partners for a unified response. Prime Minister Giorgia Meloni called the U.S. decision a mistake, expressing hope for negotiations to prevent escalation.

What is the Future of Bitcoin and the Cryptocurrency Market?

Arthur Azizov, founder of B2 Ventures, notes that the current volatility may be a short-term reaction, but long-term impacts will depend on how the market adapts to this change. Meanwhile, investors are closely monitoring the next developments in U.S. trade policies.

Although Bitcoin and altcoins are under strong selling pressure, some analysts believe this could be a good opportunity to accumulate before market recovery. The continued outflow of funds from risky assets into gold indicates that instability is likely to persist.

Can Bitcoin withstand and recover from the shock of Trump's tariff policy? Everyone is still waiting for further market and global government reactions.

Compiled by VIC Crypto

Related News:

Raydium Launches Memecoin Issuance Platform to Compete with pump.fun

PumpSwap Creates Waves with $2.5 Billion Trading Volume Just 10 Days After Launch

Canary Capital Files for First ETF Dedicated to PENGU from Pudgy Penguins NFT Project

Hyperliquid Continues to Be Attacked, Causing $20 Million to Evaporate Due to Jellyjelly Memecoin

UAE Accelerates Investment in AI and Crypto, Collaborates with Trump Administration