Crypto Market Wobbles as Trump’s Tariff Shock Sends Bitcoin Below $80K
The cryptocurrency market tumbled on Friday as fresh U.S. tariff measures reignited global risk aversion, leading to sharp losses in Bitcoin (BTC) and major altcoins. The sell-off erased all gains made since Donald Trump’s election victory in November, with traders bracing for further volatility in the days ahead.
Bitcoin’s Downtrend Deepens, XRP and DOGE Lead Losses
Bitcoin (BTC) slid 7% to $79,000, marking its lowest level since November and extending its month-long decline. The leading cryptocurrency is now down nearly 30% from its January high of over $108,000.
Altcoins suffered heavier blows, with XRP and Dogecoin (DOGE) both plunging over 10%. Ethereum (ETH), Binance Coin (BNB), and Cardano’s ADA each dropped at least 9%, mirroring a broader market sell-off. The overall crypto market capitalization declined by 8% to $2.7 trillion, completely wiping out its post-election rally.
Trump’s Tariff Move Rattles Markets
The latest market turmoil comes after Trump confirmed a new round of tariffs on Chinese imports, set to take effect on March 4. The policy adds to existing levies and has intensified concerns about an escalating trade war between the U.S. and China.
“The market is entering full risk-off mode,” said Augustine Fan, head of insights at SignalPlus. “Crypto is facing dual pressure from macroeconomic uncertainty and internal liquidity constraints, making it a tough environment for bullish momentum.”
The CoinDesk 20 Index (CD20), a benchmark for top digital assets, tumbled nearly 9% as traders rushed to hedge against further downside.
China’s Response Could Shift Market Dynamics
The timing of the tariff announcement is crucial, coming just ahead of China’s National People’s Congress, where policymakers are expected to outline economic stimulus measures. With China’s economy already under pressure from a real estate slump and deflation risks, traders will be watching closely for potential government interventions.
“A strong stimulus response from China could provide some relief, but uncertainty is keeping traders on edge,” Fan noted.
Bearish Momentum Builds as Traders Hedge Bets
Market sentiment remains grim, with options traders increasingly positioning for further declines.
“We’re seeing aggressive selling of call options and a rise in put demand,” Fan added. “Traders are adjusting to a lower volatility environment, suggesting expectations of a prolonged correction.”
MicroStrategy (MSTR), a major institutional Bitcoin holder, also saw its stock price tumble 10%, adding to fears that corporate Bitcoin adoption may slow in the near term.
With global economic uncertainty mounting, the crypto market remains vulnerable to further downside—unless a catalyst emerges to reignite bullish momentum.
