Cryptocurrency values experienced significant declines amid fears of an impending trade conflict between the United States and key trading partners, leading to notable drops in prices of various popular digital currencies exceeding 10%.
Bitcoin witnessed a downturn, falling below the $100,000 mark following U.S. President Donald Trump’s Saturday announcement of new high tariffs aimed at goods imported from Canada, Mexico, and China. By Sunday night, Bitcoin’s value had dipped to around $92,000, but it made a recovery to approximately $99,000 by Monday morning, coinciding with Trump’s decision to delay tariffs on Mexican imports.
Other cryptocurrencies, including Ethereum and Dogecoin, also saw considerable reductions in value—some dropping more than 10% in response to Trump’s comments regarding tariffs. Notably, Trump’s own meme currency, introduced shortly before he assumed the presidency, also experienced a sharp decline.
According to Garrick Hileman, an independent analyst in the cryptocurrency space, the volatility of these lesser-known cryptocurrencies compared to Bitcoin might be expected, although the extent of the price drops came as a surprise. The sell-off was indicative of a broader downturn in financial markets leading up to the implementation of the tariffs. Trump cautioned that Americans might experience “some pain” resulting from the tariffs, asserting that the economic sacrifice would be justified for the greater good of the country. He also indicated that additional import taxes would almost certainly extend to the European Union and possibly the United Kingdom.
Launched in 2009, Bitcoin was conceived as a form of digital cash free from the influence of banks and government oversight. In recent years, Bitcoin, alongside newer digital currencies, has transitioned from a niche market to a significant player in mainstream finance, with its pricing trends closely aligning with those in technology stocks.
Trump’s meme coin was trading at around $19 on Monday, which is a staggering 75% lower than its peak value immediately following its launch around his second inauguration. In comparison, First Lady Melania Trump’s recently introduced meme coin saw a more dramatic decline of nearly 90% from its historical high and is currently valued at approximately $1.50.
Meme coins, known for their extreme price fluctuations, often originate from lighthearted beginnings and can experience surges in value based on speculative trading behavior. While initially skeptical about cryptocurrency, Trump has since adopted a more favorable stance towards digital currencies, viewing them as both a personal asset and an essential aspect of economic policy. He has pledged to position the U.S. as the leading hub for cryptocurrency by appointing numerous crypto-friendly figures to critical government roles.
The cryptocurrency market has thrived since Trump’s election, and Bitcoin’s current trading activity remains close to its all-time high of $109,000.
