Washington: The cryptocurrency market faced a sharp downturn as concerns over a potential trade war between the United States and its major trading partners rattled investors. As per reports, several well-known digital assets saw their values drop by more than 10%, with Bitcoin experiencing a particularly volatile weekend. On Saturday, Bitcoin slipped below the crucial $100,000 mark following an announcement by US President Donald Trump, who revealed plans to impose significant tariffs on imports from Canada, Mexico, and China. This sudden policy shift triggered panic among investors, leading to a steep decline in crypto valuations.
By Sunday night, Bitcoin had tumbled to around $92,000, showing the broader uncertainty gripping financial markets. However, a partial recovery was seen by Monday morning after Trump temporarily halted tariffs on Mexican goods. This development helped Bitcoin climb back to approximately $99,000, offering some relief to the shaken cryptocurrency market. Ethereum, dogecoin, and other popular cryptocurrencies saw significant price drops – some more than 10% — since Trump’s weekend tariff announcement. Trump’s own meme coin, which he launched just before taking office, also saw a huge drop.
‘Americans may feel some pain from tariffs’
Trump warned Americans they may feel “some pain” from the tariffs, which he said would be “worth the price” to make America great again. He also said Sunday night that import taxes will “definitely happen” with the European Union and possibly with the United Kingdom as well. Bitcoin was created in 2009 as a kind of electronic cash uncontrolled by banks or governments. It and newer forms of cryptocurrencies have moved from the financial fringes to the mainstream in recent years, with bitcoin’s price movements largely tracking that of tech stocks.
Trump’s meme coin was trading at about $19 Monday, which is about 75% off the all-time high it reached right after Trump launched the coin on the eve of his second inauguration. First Lady Melania Trump’s new meme coin has seen an even bigger drop from its all-time high – nearly 90% — and is currently trading at about $1.50. Meme coins are a highly volatile corner of the crypto industry that often start as a joke with no real value but can surge in price if enough people are willing to buy them.
From skeptic to advocate
Trump is a former crypto sceptic who has since warmly embraced digital assets, both as a source of personal wealth and as a matter of government policy. He’s promised to make the US the world capital of crypto and appointed several crypto-friendly officials to key government positions. Cryptocurrencies have enjoyed a surge in value since Trump’s election and bitcoin is still trading near its all-time high of $109,000.
(With AP inputs)
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