President Donald Trump’s most recent tariff announcement shook markets, causing Bitcoin to plummet late Wednesday.
Right before Trump’s trade policy announcement late this afternoon, the top cryptocurrency was trading just around $83,000, down from close to $88,000.
In a formal announcement, Trump imposed retaliatory duties on a wide variety of nations, including several significant trading partners of the United States. During the day, stocks had increased, but many were severely impacted.
With the “QQQ” ETF, which tracks the tech-focused Nasdaq 100 index, falling over 4%, risk assets in particular saw a decline.
Stocks linked to cryptocurrency also experienced a decline in after-hours trading. Recently, the large bitcoin buyer Strategy (MSTR), formerly known as MicroStrategy, had a 7% decline. Coinbase Global (COIN), a cryptocurrency exchange, had a 6% decline, while Robinhood (HOOD) saw a 9% decline.
Trump’s tariffs may provide markets more stability.
The brief spike was a case of “uncertainty relief,” according to Rachael Lucas, a crypto analyst at the Australian cryptocurrency exchange BTC Markets. As soon as the full tariff information were made public, there was a sell-off.
As local traders rushed to realign, trading volume on Bitcoin markets increased by 46%. Smaller investors resisted the surge, while major players profited,” she stated in a statement.
Another bout of panic selling is to be expected if China or the European Union “hit back hard,” she warned.
In a Bloomberg interview on April 2, US Treasury Secretary Scott Bessent urged US trade partners to refrain from retaliation actions, stating that if they don’t attempt to impose further taxes in return, “this is the high end of the number” for tariffs, which might give markets a “ceiling” and clarity.
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Markets saw a great deal of volatility during Trump’s address, but the clarity could be advantageous in the long run, according to David Hernandez, a crypto investing specialist at crypto asset management 21Shares, who spoke to Cointelegraph.
“The announcement gave much-needed clarity on the scope and scale of the policy, even though the tariff rates were a little higher than anticipated,” he added.
“Since speculation has mostly subsided, institutional investors may see a chance to profit from compressed valuations in the days ahead.” “Markets thrive on certainty.”
Hernandez thinks global responses will be essential for the market moving ahead, speculating that Mexico and key East Asian nations, including China, South Korea, and Japan, might be studying countermeasures.
