Key takeout
The new tariffs announced by President Trump have reduced the value of Bitcoin by 5% amid the sale of global markets. The US stock market struggled with massive selling and wiped out more than $2 trillion in value after opening Thursday.
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Bitcoin fell 5% to $82,200 on Thursday to $82,200, down Thursday to $82,200, down to $82,200, according to Coingecko data.
Trump announced a series of tariff sets on Wednesday in response to what he described as a national emergency caused by a massive, sustained US trade deficit.
The executive order imposes a minimum 10% tariff on all imports from all countries that are due to take effect on April 5th. Countries with a significant trade deficit in which the United States is facing higher tariffs starting April 9th.
China faces 34% tariffs, 20% in the European Union, 32% in Taiwan, 25% in South Korea and 17% in Israel.
These tariffs are part of the administration’s strategy to promote US economic interests and reduce dependence on foreign goods.
Uncertainty about US trade tariffs and risks of recession has shaken the market, prompting investors to sell from dangerous investments such as crypto and stocks.
Apart from Bitcoin, major altcoins also suffered sharp losses, with Ethereum falling by 6%, XRP falling by nearly 8%, Dogecoin and Cardano falling by more than 9%, and Solana falling in double-digit losses.
The Binance Coin got slightly better, soaking just 3%.
The smaller altcoins were hit even more harder with high lipids, PI Network, Ethena, Pepe, Bonk, Celestia and official Trump all posting double-digit declines.
As a result, the total crypto market capitalization fell 6.5% to $2.7 trillion as investors tackled the growing uncertainty.
Wall Street Cleanup: Over $2 trillion erased
The broader US stock markets have wiped out more than $2 trillion in value after Thursday’s opening, allowing technology companies to take the brunt of selling, according to Yahoo Finance data.
The S&P 500 fell 4%, the Nasdaq fell 5%, and the Dow Jones industrial average fell 3%.
The technology-rich Nasdaq Composite has performed its worst since 2022, down 13% since the start of the year.
Apple and Amazon led the Tech Stock sale, each falling nearly 9%. Apple has been on track with its worst day performance since 2020, and was overwhelmed by Asian manufacturing.
Meta and Nvidia have slid over 7%, while Tesla has slid over 5%. Microsoft and Alphabet saw a mild decline of about 2%. Taiwan’s chip production and Mexican parliament Nvidia were particularly vulnerable to trade policy news.
Semiconductor inventory also suffered a recession as Marvell Technology, Arm Holdings and Micron Technology each saw losses of over 8%. Broadcom and Lam’s studies fell by 6%, while advanced microdevices fell by more than 4%.
According to Wefi co-founder Maksym Sakharov, Trump’s tariffs are more like negotiation tactics than long-term policy, suggesting that “the impact on businesses and consumers remains manageable.”
Beyond trade tensions, inflationary pressures could pose another risk and disrupt the Fed’s rate cut prospects, Sakharov added.
“Additionally, the pressing financial debate in Washington about the federal budget is also causing uncertainty in the market,” analysts said. “Resolving debt caps remains a pressing issue as the Ministry of Finance currently relies on ‘extraordinary measures’ to fulfill its financial obligations. The exact timeline for when these measures run out is unknown, but analysts expect it to run out after the first quarter. ”
According to Arthur Hayes, Bitmex co-founder, Trump’s tariffs reduce the amount of US dollars held by foreigners, thereby reducing the ability and willingness to buy US Treasury bonds.
Hayes predicts that the Fed must intervene to combat declining foreign demand and maintain a functioning financial market. Analysts suggest that central banks will return to printing money. This is beneficial for the price of Bitcoin.
Trump’s tariff formula is further evidence that he focuses on lasers, which focuses on reversing these imbalances. The problem with the Ministry of Finance is that foreigners cannot buy bonds without $export. The Fed and banking system must step up to ensure a functioning Ministry of Finance MRKT, meaning BRRRR. pic.twitter.com/dogpaarfal
– Arthur Hayes (@cryptohayes) April 3, 2025
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