As the Trump administration announced fresh tariffs against its trading partners, the global stock and crypto markets reacted instinctively, facing setbacks within hours on Wednesday a.k.a the Liberation Day.
The broader crypto market saw a major setback after an initial pump in a short, quick spike but later lost nearly 5% of market cap.
As usual, Bitcoin (BTC) was the first cryptocurrency to react to Trump’s bombshell on tariff arrangements, with it surging to $88,500 in minutes but declining 6% afterwards and falling as low as $82,200 – as per market data. At the time of writing, Bitcoin price is trading near $83,300 with a 24-hour trading volume of $53.13 billion.
Bitcoin (BTC) Price – Source: TradingView
Following Bitcoin and uneased uncertainty, Ethereum (ETH) and other altcoins also took a hit. ETH price pumped to $1,941 while it later declined 8% and pulled as low as $1,785 after the market turmoil.
Similarly, Solana (SOL) also had a similar move with it spiking to $135 and dumping back to $117, marking a notable 13% drop. At the time of writing, SOL is trading near the $119 price mark – down 4% in the past 24 hours.
Solana (SOL) Price – Source: Coinmarketcap
Other major altcoins – including XRP, BNB, ADA, and TRX – also witnessed similar moves, with all losing the previous day’s gains and trading below daily highs.
Despite Trump not mentioning Bitcoin or cryptocurrency in his tariff speech, the crypto market witnessed dramatic movements and increased volatility, further solidifying the role of this industry in the global trade and finance industry.
As most of the hype around the “trade war” has now cooled down, it is unclear which side the crypto market will move. Given that Bitcoin and other leading crypto assets have gone through a major downtrend last month, analysts are now expecting it to recover past gains and surge to new highs in coming months.
