FameEX Hot Topics | Crypto Tumbles as Trump’s Tariff Policy Shakes Global Markets

Cryptocurrency markets suffered a steep decline on April 6 as U.S. stock futures opened sharply lower, rattled by the Trump administration’s aggressive expansion of its global tariff strategy. The sweeping trade measures sent shockwaves through financial markets, triggering a broad sell-off in digital assets. Traders responded swiftly, with concerns rising over the potential long-term impact of a global trade war on economic growth and market stability. Confidence across global markets faltered, and crypto assets were among the hardest hit.

Beginning April 5, the Trump administration imposed a universal 10% tariff on all countries, with significantly higher rates targeting key trading partners. China was hit with a 34% tariff, while the European Union and Japan faced tariffs of 20% and 24%, respectively. These aggressive moves prompted widespread concern among investors and analysts, who fear the escalating trade conflict could lead to reduced global demand and increased market volatility—factors that often weigh heavily on risk assets like cryptocurrencies.

Bitcoin plunged more than 6% over the past 24 hours, trading around $77,883 as of April 6. The broader cryptocurrency market was also impacted, with total market capitalization falling over 8% to $2.5 trillion. Reflecting this sharp downturn in investor sentiment, the Crypto Fear & Greed Index registered a score of just 23 on April 7, signaling “extreme fear” in the market.

Former President Donald Trump took to his Truth Social platform on April 6 to justify the tariffs, stating they were necessary to address the U.S.’s trade imbalances with countries like China and the EU. “The only way this problem can be cured is with TARIFFS,” he wrote, calling them “a beautiful thing to behold.”

Speaking aboard Air Force One, Trump denied deliberately triggering a market slump but likened the action to taking “medicine” to fix a deeper issue. Meanwhile, U.S. National Economic Council Director Kevin Hassett said more than 50 countries have already reached out to negotiate new trade deals, suggesting the tariffs are driving global economic recalibration.

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