Cryptocurrency Prices Decline Amidst Trump’s Tariff Policy

By Jocelyn Fernandes
April 9, 2025, 12:38 PM IST

Cryptocurrency markets are experiencing turbulence as the prices of Bitcoin and Ether have dropped significantly, following the recent implementation of new tariffs by former President Donald Trump. As markets react to these changes, questions arise about the potential for short-term recovery in the cryptocurrency sector.

Current Market Status

According to data from CoinMarketCap, as of April 9, the total cryptocurrency market capitalization has fallen to $2.42 trillion, marking a 4.86 percent decline over the past 24 hours. Bitcoin, the leading digital asset, is trading around $76,307.79, down 4.56 percent, with a market capitalization of $1.51 trillion. Ether (ETH) has suffered even steeper losses, dropping 9.04 percent to $1,447.98.

The current trading volume for the crypto market has decreased sharply, down 36.14 percent to $123.47 billion over the same period. Notably, Bitcoin’s share of the total market has increased slightly to 62.62 percent, indicating its continued dominance in the cryptocurrency space. The stablecoin Tether, meanwhile, is steady at $0.9991, maintaining its position as the most traded cryptocurrency linked to the U.S. dollar.

Tariff Impacts on the Market

The decline in cryptocurrency prices coincides with the introduction of a 104 percent tariff on certain imports from China, announced by Trump. This policy, viewed as a significant escalation in trade tensions, has had ripple effects across various markets, not only impacting equities but also cryptocurrencies, as investors seek safer assets.

Investment expert Sean McNulty from digital asset firm FalconX remarked on the prevailing sentiment: “It seems like people have given up on a major recovery in crypto in the first half of the year.” He identified the critical support level for Bitcoin around $65,000, suggesting that traders are becoming increasingly cautious.

Expert Analysis on Recovery Outlook

Analysts are divided on the potential for a crypto recovery in the near term. Riya Sehgal, a research analyst at Delta Exchange, highlighted that Bitcoin’s sharp decline reflects how global trade tensions are now influencing digital asset volatility. She pointed out that with investor sentiment shifting to a more cautious stance, the significant trading activity has led to liquidations exceeding $400 million, a situation characterized by a high percentage of shorts in the market.

Despite these short-term setbacks, some experts hold an optimistic long-term view. Sehgal noted that while volatility is expected to persist, the fundamental aspects of cryptocurrencies remain intact, contingent on improvements in macroeconomic stability and clearer regulatory environments.

Moreover, Edul Patel, CEO of the crypto platform Mudrex, expressed a measured hope regarding Bitcoin, stating, “Bitcoin has bounced back to $76,000 after retesting the support zone at $74,500 as trade tensions escalated.” He anticipates that a slight drop in the Dollar Index may support Bitcoin’s price movements in the coming days.

Conclusion

As the cryptocurrency market navigates the impact of recent U.S. tariffs and ongoing geopolitical tensions, the immediate outlook remains uncertain. Analysts continue to monitor these developments closely, gauging their long-term implications for digital asset investors. The market’s response to such macroeconomic challenges underscores the intricate interconnections between global trade policies and cryptocurrency valuations.

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