Trump’s Tariff Threat Shakes Crypto Market – Bitcoin and Meme Coins Take a Hit

Cryptocurrency markets faced a sharp downturn over the weekend following President Donald Trump’s announcement of sweeping tariffs on goods from Canada, Mexico, and China. The prospect of a new trade war sent digital assets tumbling, including Trump’s own meme coin, which has plummeted nearly 75% from its peak.

Bitcoin Dips Before Rebounding

Bitcoin, the world’s most dominant cryptocurrency, saw a significant price decline, dropping from around $105,000 to $92,000 in response to Trump’s tariff threats. However, the digital asset quickly rebounded back above $100,000 after the president temporarily paused tariffs on Mexican and Canadian imports. While Bitcoin proved relatively resilient, other cryptocurrencies, including Ethereum and Dogecoin, continued to struggle with heavy losses.

Garrick Hileman, an independent cryptocurrency analyst, noted that non-Bitcoin cryptocurrencies are typically viewed as riskier assets, which may explain why they faced steeper declines. “It’s a little surprising how big the gap is,” he added, referencing Bitcoin’s rapid recovery compared to the broader market.

Meme Coins Suffer Major Losses

Meme coins, known for their volatility and speculative nature, were among the hardest hit. Trump’s own meme coin, which saw a surge in popularity after its launch ahead of his second inauguration, plummeted to $19—down a staggering 75% from its all-time high. Similarly, First Lady Melania Trump’s meme coin has nosedived nearly 90% from its peak.

Meme coins often rely on hype and community engagement rather than fundamental utility, making them particularly vulnerable to sudden market shifts. With uncertainty looming over U.S. trade policies, investor sentiment appears to be turning away from these high-risk assets.

Market Volatility and Institutional Adoption

The broader financial market also experienced turbulence as investors braced for potential economic fallout from the tariffs. While U.S. stock markets pared early losses after Mexico negotiated a one-month reprieve, traders remain cautious about Trump’s vow to impose tariffs on the European Union and possibly the United Kingdom.

Nic Carter, a partner at Castle Island Ventures, pointed out that Bitcoin’s evolution into an institutional asset has increased its exposure to macroeconomic forces. “We wanted Bitcoin to become this global macro asset class. Now it is,” he explained, emphasizing how the cryptocurrency’s price movements are now influenced by broader market conditions.

Trump’s Changing Stance on Crypto

Once a vocal crypto skeptic, Trump has since embraced digital assets, both as a personal financial opportunity and as part of his broader economic strategy. His administration has appointed crypto-friendly officials, and he has promised to position the U.S. as a global hub for cryptocurrency innovation.

Despite recent volatility, Bitcoin remains near its all-time high of $109,000, reflecting continued optimism in the market. However, Trump’s shifting trade policies could pose ongoing risks for crypto investors as global economic uncertainty intensifies.

Final Thoughts

As the dust settles, the crypto market’s resilience will be tested by upcoming regulatory and economic developments. While Bitcoin may recover faster than most, meme coins and other speculative assets could remain under pressure. Investors should brace for further swings as the geopolitical landscape continues to evolve.

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