The leading digital currency dropped by as much as 4%, reaching approximately $82,000 on Thursday morning in Singapore before recovering some losses, while other cryptocurrencies such as Ether and XRP also saw decreases. Solana at one stage lost over 9% of its value.
Trump declared on Wednesday that a minimum 10% tariff would be applied to all exporters to the US, with additional duties targeting around 60 countries experiencing the largest trade imbalances with the US. China faces a 34% tariff, the European Union will encounter a 20% levy, and Japan will see a 24% tariff. Cryptocurrencies initially reacted calmly to the announcement, but began to weaken as Asian traders started their day.
“Being a risk-on asset, cryptocurrencies typically perform poorly during uncertain times following announcements like sustained high interest rates or new trade tariffs,” stated John Wu, president at Ava Labs.
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BloombergA $577 billion exchange-traded fund tracking the S&P 500 (SPY) fell nearly 2.5% after the regular trading session in the US on Wednesday, erasing earlier gains.
“In the short term, markets are likely to experience a drop, not directly due to the tariffs, but because of what they signify: the resurgence of policy-induced volatility,” explained Ben Kurland, CEO of the crypto research platform DYOR. “Traders dislike unpredictability, and this indicates more is to come.”
In contrast, gold reaffirmed its status as a safe haven by reaching an all-time high of nearly $3,160 an ounce on Thursday, with bullion being one of the few commodities exempt from the tariffs, according to a White House factsheet. While digital-asset proponents have often promoted Bitcoin as a similar safe haven for investors, the original cryptocurrency has shown vulnerability during periods of upheaval over the past year.
“The next significant movement will depend on geopolitics, shifts in policies, and whether traders perceive Bitcoin as a risk asset or a refuge,” remarked Rachael Lucas, a crypto analyst at BTC Markets. She emphasized that $80,000 is a critical “must-hold” level for Bitcoin.
