Cryptocurrency Market Takes a Hit Amid Trump’s Tariffs
April 9, 2025 – By Jocelyn Fernandes
In a notable downturn, the cryptocurrency market has witnessed significant drops in the prices of major tokens such as Bitcoin and Ether. This decline is largely attributed to newly implemented tariffs announced by former President Donald Trump, which have ostensibly impacted both equity and crypto markets.
Decline in Prices and Market Capitalization
As of April 9, Bitcoin was observed trading at approximately $76,308, reflecting a 4.56% decrease. The market capitalization for Bitcoin now stands at around $1.51 trillion, down 4.61% from previous levels, with a trading volume in the last 24 hours recorded at $52.78 billion.
Ether fared even worse, plummeting 9.04% to about $1,447.98, resulting in a market cap of $174.74 billion and a trading volume of $25.58 billion. The overall cryptocurrency market capitalization has diminished to $2.42 trillion, a drop of 4.86%, as reported by CoinMarketCap. Notably, the trading volume has also decreased by 36.14%, now at $123.47 billion.
Even the stablecoin Tether, known for its link to the US dollar, saw prices holding steady around $0.9991, maintaining a market cap of $143.88 billion.
Impact of Tariffs on Market Sentiment
The fallout from Trump’s tariff policy, which includes a steep 104% duty on imports from China, has raised concerns among market analysts. The announcement of these tariffs coincided with a noticeable uptick in gold prices, suggesting that investors are seeking safer assets amidst the turmoil in the cryptocurrency realm.
Sean McNulty, head of APAC derivatives at digital-asset prime brokerage FalconX, indicated that market sentiment has soured. He noted, “It seems like people have given up on a major recovery in crypto in the first half of the year.” He further mentioned that Bitcoin’s critical support level is now hovering around $65,000, as traders have begun to purchase put options to hedge against possible losses in Ether and Solana.
Riya Sehgal, a research analyst at Delta Exchange, echoed similar sentiments regarding the cautious outlook. She stated, “Bitcoin’s sharp drop below $75,000 highlights how global trade tensions are now key drivers of digital asset volatility.” The analyst highlighted over $400 million in liquidations, with shorts comprising 60% of open interest, signifying a notable shift in investor sentiment.
Long-term Perspectives Amidst Short-term Volatility
Despite the immediate downturn, experts remain cautiously optimistic about the long-term potential of cryptocurrencies. Sehgal emphasized that while the short-term outlook appears challenging, the long-term fundamentals of cryptocurrencies are still intact, reliant on macroeconomic stability and regulatory clarity.
Interestingly, the recent disbandment of the National Cryptocurrency Enforcement Team under the Trump administration was interpreted as a positive, pro-innovation gesture. It suggested potential pathways towards establishing a national Bitcoin reserve and easing regulatory burdens on the crypto sector.
Edul Patel, co-founder and CEO of Mudrex, also expressed a positive outlook, remarking that Bitcoin had recently rebounded to $76,000 after testing support levels around $74,500. He suggested that shifts in the Dollar Index could provide support for Bitcoin’s price action in the near term.
Conclusion
As the cryptocurrency market navigates through these turbulent waters catalyzed by geopolitical tensions and tariff implementations, both short-term volatility and long-term growth prospects will remain under scrutiny. Investors are urged to stay informed as the landscape continues to evolve amidst external pressures and economic shifts.
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