Bitcoin and Crypto Prices Decline Amid Trade Tensions and Inflation Concerns Affecting Markets

Cryptocurrency prices continued to decline on Sunday evening, moving lower alongside U.S. stock futures as investors reacted to rising trade tensions and renewed inflation worries ahead of a busy financial week.

Bitcoin has dropped to $82,100, while Ethereum has decreased to around $1,790. XRP now stands at $2.13, based on CoinGecko data.

This decline follows weeks of volatility in equity markets, with significant sell-offs in major tech stocks and a general weakening of sentiment.

Futures for the S&P 500 and Nasdaq-100 fell approximately 0.7% to 0.8%, while Dow futures decreased by 0.55% during early trading.

These declines occur just before the April 2 introduction of reciprocal tariffs ordered by President Donald Trump, which, according to Barclays, could impact as many as 25 countries.

The sectors anticipated to be hit hardest include automobiles, pharmaceuticals, and semiconductors.

This tariff initiative ispart of a wider strategy by the Trump administration to generate $600 billion in annual revenue using a new collection method dubbed the “External Revenue Service.”

Specifically, auto-related tariffs are projected to affect over $275 billion in annual imports.

Consequently, U.S. consumer sentiment has sharply declined.

According to The Kobeissi Letter, a financial newsletter, consumer sentiment has dropped by about 20 points over the past month to a reading of 57, marking its lowest level outside of a formal recession.

“A slowdown in the economy has clearly started,” the report indicated.

Analysts predict inflationary pressures to increase across the majority of sectors in the U.S. economy.

Data from the previous Trump-era trade conflicts indicated a 4% rise in PCE prices within tariff-affected categories, while non-affected markets saw a 2% reduction, per The Kobeissi Letter.

The downturn in cryptocurrency values reflects a broader hesitance among investors, particularly as significant institutional capital shifts away from high-risk investments.

In parallel, the so-called “Magnificent 7” stocks have seen a reduction of over $3 trillion in market capitalization in recent times.

While retail trading activity remains robust, volatility has escalated across both traditional and digital markets.

Although some investors see Bitcoin as a viable inflation hedge, short-term correlations with equity markets suggest that cryptocurrencies are still influenced by overall macroeconomic conditions.