- Bitcoin and Ethereum prices plunged after Trump’s tariff announcement.
- Market sentiment shifted drastically to fear.
- Significant increase in cryptocurrency withdrawals.
Cryptocurrency markets experienced significant turmoil in April 2025 when U.S. President Donald Trump announced sweeping tariffs affecting major U.S. trade partners. This action initiated a downturn across both traditional and cryptocurrency markets, impacting key assets like Bitcoin and Ethereum.
President Trump’s tariff announcement has sparked concerns over market stability, with notable impacts on cryptocurrencies. Investors reacted swiftly, causing sudden shifts in market sentiment and trading volumes.
During this period, Bitcoin’s price dropped sharply from $65,200 to $63,500, influenced by a tweet from WallStreetBulls predicting a Bitcoin crash.
Trading volumes for Bitcoin surged dramatically following the prediction, highlighting increased market activity.
The tariffs led to heightened uncertainty and volatility in cryptocurrency markets. Ethereum and XRP also experienced declines, while withdrawals from exchanges signaled investor caution. This mirrored historical patterns following macroeconomic shocks.
The financial implications of Trump’s tariffs extend across multiple markets, leading to increased dollar strength and higher gold prices. Similarly, cryptocurrency investors leaned towards safer assets, following historical trends during recessionary periods.
“The announcement of sweeping tariffs on major U.S. trade partners was the primary macroeconomic event that triggered sharp downturns across both traditional finance and crypto markets.” — Donald Trump
Historical data suggest parallels between this event and past economic shocks, including the Smoot-Hawley Tariff Act. As investors adjust strategies, watching market sentiment and liquidity will be key in navigating this evolving economic landscape.
