FameEX Hot Topics | Trump’s Tariff Shockwaves Slam Global Markets, Drag Crypto Down

Cryptocurrency prices plunged sharply on April 6 as U.S. stock futures opened with steep losses, following the Trump administration’s aggressive escalation of its global tariff strategy. The sudden market jolt triggered widespread sell-offs across digital assets, reinforcing fears of broader financial instability. As traders reacted to the sweeping tariffs, confidence across global markets weakened, dragging crypto markets down with them.

The administration implemented a blanket 10% tariff on all countries beginning April 5, while targeting specific regions with even higher rates. China faced a 34% tariff, the European Union was hit with a 20% rate, and Japan saw tariffs rise to 24%. These sweeping trade measures were met with concern by investors, who fear they could spark a global trade war and dampen economic growth, both of which are bearish for risk-on assets like cryptocurrencies.

Bitcoin dropped more than 6% in the past 24 hours, trading around $77,883. The broader cryptocurrency market was also hit hard, with total market capitalization falling over 8% to $2.5 trillion. The Crypto Fear & Greed Index, a key gauge of market sentiment, reflected the downturn, registering a score of just 23 on April 7—signaling “extreme fear” among investors.

In a statement posted to his social media platform, Truth Social, on April 6, former President Donald Trump defended the tariff measures, claiming they would help correct the United States' trade deficits with China, the European Union, and others. “The only way this problem can be cured is with TARIFFS,” Trump said. He emphasized the economic benefit of the tariffs, calling them “a beautiful thing to behold.”

Speaking from Air Force One, Trump added that he wasn’t intentionally triggering a market sell-off but compared the strategy to taking necessary medicine to address a long-term issue. Meanwhile, National Economic Council Director Kevin Hassett revealed in an ABC interview that over 50 countries have reached out to negotiate new trade agreements in response to the tariffs, acknowledging the pressure the measures place on foreign economies.

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