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How the Crypto Market Reacted to the Latest Tariff Announcements
The cryptocurrency market has experienced significant volatility in response to recent tariff announcements by the U.S. government. These policy shifts have influenced investor sentiment, leading to notable fluctuations in digital asset prices.
Initial Market Decline Following Tariff Announcements
On April 7, 2025, President Donald Trump announced sweeping tariffs, which led to a sharp decline in both traditional and crypto markets. Bitcoin (BTC) fell by as much as 5.5%, reaching its lowest level in 2025. Shares of major crypto-related firms also declined, with MicroStrategy falling over 7%, Coinbase dropping 6%, and Robinhood sliding 4%. This downturn followed new tariffs unveiled by President Donald Trump, which, while not directly targeting crypto firms, undermined investor confidence and risk appetite. citeturn0news21
Market Rebound Amid Tariff Pause
The market experienced a rebound following President Trump’s announcement of a 90-day pause on most global tariffs. Bitcoin surged above $82,000, recovering from recent lows. Smaller cryptocurrencies such as Ether, Solana, and XRP also experienced significant gains. Crypto-related stocks benefited from the positive momentum: MicroStrategy jumped nearly 25%, while shares of Coinbase Global rose by 17%. The market response suggests renewed investor confidence tied to reduced trade tensions. citeturn0news22
Current Market Status
As of April 12, 2025, the cryptocurrency market has shown signs of stabilization. Bitcoin is trading at approximately $83,861, reflecting a 2.9% increase from the previous close. Ethereum (ETH) is priced at around $1,593.87, up 2.25%, and XRP is trading at $2.06, marking a 2.49% rise. These figures indicate a cautious optimism among investors as they continue to monitor ongoing trade developments.
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Conclusion
The cryptocurrency market has been notably responsive to recent tariff announcements, with initial declines followed by recoveries in response to policy adjustments. This pattern underscores the sensitivity of digital asset markets to global economic policies and highlights the importance for investors to stay informed about geopolitical developments.
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