Crypto Market Declines as Trump’s Tariff Talk Stokes Renewed Uncertainty

The cryptocurrency market continued its decline on Wednesday as President Donald Trump’s renewed tariff rhetoric added to market uncertainty.

Bitcoin (BTC) recorded a slight 1% decline over the past 24 hours, trading at around $86,980, despite GameStop’s announcement of adding Bitcoin to its treasury reserves.

Meanwhile, Ethereum (ETH) dropped 2.3% to $2,020, remaining nearly 60% below its all-time high of $4,878 from November 2021. XRP fell 1.3% to around $2.41, while Solana (SOL) saw a steeper drop of 4.2%, reaching $139.

The total cryptocurrency market capitalization dropped by 3.3% in the past 24 hours to $2.95 trillion, according to CoinGecko. Total liquidations in the same period totaled $216 million, with BTC accounting for $45 million and ETH for $33 million, according to CoinGlass data.

“On a macro level, the looming introduction of US reciprocal tariffs is driving risk aversion,” said Bas Kooijman, the CEO and Asset Manager of DHF Capital S.A. “The announcement of tariffs on countries purchasing Venezuelan oil added to the concerns. As a result, economic growth and inflationary risks were further compounded.”

Trump’s Trade War

On Monday, Trump issued an executive order imposing tariffs on goods from countries that purchase Venezuelan oil, claiming that Venezuela has “purposefully and deceitfully” sent criminals and murderers into the US.

According to the order, a 25% tariff may be applied to all goods imported into the US from any country that buys Venezuelan oil, either directly or through third parties. This tariff is set to take effect on or after April 2, the same day Trump plans to introduce “reciprocal tariffs” on countries with higher tariffs on US imports than the U.S. imposes on their exports.

Earlier this year, the president also announced tariffs on China, Canada, and Mexico. As the Trump administration prepares to implement these, experts noted that the cryptocurrency market is likely to remain volatile and are keeping a close eye on key economic data in the coming weeks.

“Looking forward, investors will closely monitor this week’s GDP and PCE numbers, which could provide crucial clues on the Fed’s next moves,” Kooijman said. “Additionally, speeches from several Fed officials may further shape expectations for the central bank’s next move.”