FameEX Hot Topics | Trump’s Trade Moves Ripple Through Crypto Markets

On April 2, U.S. President Donald Trump declared a "national emergency" and announced sweeping tariffs that sent shockwaves through global financial markets, including crypto. Speaking from the White House Rose Garden, Trump introduced a blanket 10% tariff on all countries, with significantly higher rates aimed at key trading partners: 34% on China, 24% on Japan, and 20% on the European Union. He argued that the U.S. had been treated unfairly for decades and that these measures would “level the playing field.”

The initial market reaction was mixed. Crypto traders momentarily responded with optimism to the 10% blanket tariff. Bitcoin surged to an intraday high of $88,500, driven by speculation that a weakened global trade environment could favor decentralized assets. However, the optimism quickly faded once the full details of the tariffs emerged. As investors digested the severity of the move, Bitcoin retraced sharply, falling 2.6% to around $82,876. The broader crypto market followed suit with widespread losses. The Crypto Fear & Greed Index dropped to 25, signaling “extreme fear” among market participants.

Traditional financial markets were hit even harder. According to The Kobeissi Letter, the S&P 500 lost more than $2 trillion in value in a single day—roughly $125 billion in market cap erased per minute. The selloff underscored fears of a potential global trade war, particularly if major economies retaliate with tariffs of their own.

In an attempt to stabilize market sentiment, Treasury Secretary Scott Bessent told Bloomberg that the newly announced tariffs represented the “high end of the scale” and advised U.S. allies not to respond with further levies. He stressed that a measured global response could establish a tariff ceiling and help bring a degree of certainty back to financial markets.

Meanwhile, some in the crypto sector see a silver lining. David Hernandez, a digital asset strategist at 21Shares, noted that although the tariffs exceeded market expectations, they brought a level of policy clarity. “Institutional investors may view this as a chance to enter the market at discounted valuations,” he said. Still, he cautioned that future developments—particularly how nations like China, Japan, South Korea, and Mexico respond—will be critical in determining both the market’s direction and geopolitical stability moving forward.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.