FameEX Hot Topics | Trump’s Tariffs Spark Movement in Crypto Markets

U.S. President Donald Trump’s declaration of a "national emergency"and the introduction of sweeping tariffs on all countries triggered a sharp downturn in the crypto market. The tariffs, announced on April 2 during a speech at the White House Rose Garden, include a blanket 10% rate on all nations, with higher rates imposed on specific regions—China at 34%, the European Union at 20%, and Japan at 24%. Trump claimed the U.S. has long been charged unfairly by other countries and said the new measures were designed to level the playing field.

Initially, crypto markets responded with optimism, briefly rallying at the announcement of the 10% tariff. Bitcoin, which had been gaining momentum, surged to a session high of $88,500. However, when the full extent of the tariff policy became clear, the rally reversed sharply. Bitcoin dropped 2.6% to around $82,876, and the broader crypto market experienced losses across the board. The Crypto Fear & Greed Index, which tracks sentiment in the digital asset space, fell to a score of 25—classified as "extreme fear."

Traditional markets were also hit hard by the announcement. According to The Kobeissi Letter, the S&P 500 index lost over $2 trillion in market capitalization in a single session, translating to approximately $125 billion in losses per minute. The widespread impact reflects growing concerns among investors about the potential ripple effects of a full-scale trade war, especially if key trading partners decide to retaliate.

In response to these fears, U.S. Treasury Secretary Scott Bessent attempted to calm markets during an interview with Bloomberg. He noted that the announced tariffs represent the “high end of the number” and urged global partners not to respond with further levies. Bessent emphasized that avoiding retaliatory measures could help establish a ceiling for tariffs and restore a measure of predictability to the market environment.

David Hernandez, a crypto investment specialist at 21Shares, highlighted that despite short-term volatility, the announcement could have a stabilizing effect in the long run. “Although the tariff rates were slightly higher than expectations, the announcement provided much-needed clarity,” he said. With reduced uncertainty, Hernandez believes institutional investors may seize the opportunity to buy undervalued assets, though he warned that the global response—especially from countries like China, South Korea, Japan, and Mexico—will play a critical role in shaping what comes next.

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