Crypto Markets Stumble for Third Day Amid Trump Tariff Jitters, Fed Uncertainty

The cryptocurrency market experienced volatility for a third consecutive day on Thursday, as investors weighed tariff tensions, Fed Chair Jerome Powell’s latest remarks, and U.S employment data.

Bitcoin (BTC) is flat over the past 24 hours, trading at around $85,000, while Ethereum (ETH) gained 1.5% to $1,605. Meanwhile, XRP is unchanged at $2.09, and Solana (SOL) climbed 5% to trade above $134.

The overall cryptocurrency market capitalization dropped 1.7% to $2.77 trillion, according to CoinGecko. Leveraged liquidations over the past 24 hours totaled $198 million, according to CoinGlass data. BTC led with $57 million, followed by ETH with $40 million. Altcoins contributed around $19 million.

U.S. spot Bitcoin exchange-traded funds (ETFs) on April 16 recorded nearly $170 million in outflows, per SoSoValue data. Spot ETH ETFs recorded approximately $12 million in outflows.

Trade War

Experts attribute the recent volatility to increased investor anxiety over President Donald Trump’s renewed tariff measures, which have only been heightened by mixed macroeconomic data.

“Investors reacted to Fed Chair Jerome Powell’s remarks, where he acknowledged that tariffs could both stoke inflation and weigh on growth, complicating the Fed’s dual mandate,” said Bas Kooijman, the CEO and Asset Manager of DHF Capital S.A. “Nonetheless, he emphasised that the central bank was in no rush to cut interest rates and could wait for greater clarity before adjusting policy.”

In response, President Trump yesterday criticized Powell in a social media post, arguing that Powell should be cutting interest rates and adding that “his termination cannot come fast enough.”

Jobless Claims Drop

New macroeconomic data released earlier today also drove some market uncertainty. The report showed that weekly jobless claims fell by 9,000 to 215,000, pointing to steady labor market conditions.

However, continuing claims rose by 41,000 to 1.885 million, suggesting it’s taking longer for some workers to find new jobs.

Kelghe D'Cruz, the CEO of Pairs, explained that today’s volatility is rarely the result of just one headline. “More often, it’s a combination of macro signals, crowded positioning, and thin liquidity in key moments,” he noted. “The real challenge is staying ready, keeping risk tight, knowing your trade and not letting short-term panic throw off a long-term strategy.”