Crypto Markets Drop as Trump Announces Sweeping Tariffs

Crypto Markets Drop as Trump Announces Sweeping Tariffs

In Summary

  • Crypto markets plunge after Trump’s tariff announcement
  • Bitcoin falls 3%, Ethereum and Solana drop over 6%
  • US miners could face higher costs due to ASIC chip tariffs
  • Market-wide selloff hits stocks like Apple, Amazon, and Nvidia


Catenaa, Friday, April 03, 2025-Cryptocurrency prices tumbled Wednesday after President Donald Trump unveiled new reciprocal tariffs on nearly 200 U.S. trading partners, sparking markets-wide selloffs. 

Bitcoin fell 3% to $82,600 after briefly touching $88,000. Ethereum dropped over 6% to below $1,800, while Solana shed 6.5%, trading near $118.

Other top cryptocurrencies, including Dogecoin and XRP, also declined. The broader GMCI 30 index fell 4.6% in the last 24 hours. 

Trump’s tariffs, set to take effect in early April, include a 10% baseline levy on imports, with some reaching 49%. A 25% tariff will apply to all foreign-made cars. The White House stated the move aims to restore trade balance, but financial markets reacted negatively. 

Futures for the Dow, Nasdaq, and S&P 500 plummeted 2%-4% in after-hours trading. Tech stocks, including Apple, Amazon, and Nvidia, suffered steep losses. 

Crypto industry experts warn the tariffs could hit Bitcoin miners by increasing hardware costs. “The mining industry relies on ASIC chips from China,” said Two Prime Digital Assets CEO Alexander Blume. “Higher costs could push out smaller U.S. miners.” 

Blume also speculated that the U.S. government might use the new tariff revenues to acquire Bitcoin, aligning with Trump’s prior directive to explore budget-neutral Bitcoin acquisitions. 

Meanwhile, mining stocks took a hit, with Core Scientific, MARA, Riot Platforms, and Hive Digital all trading lower after hours. 

Protected by Copyscape