Bitcoin and Altcoins Tumble Amid Trump’s Tariff Escalation

April has witnessed one of the major turbulent phases in the crypto markets. As per Santiment’s analytics, since the U.S. President’s announcement of the exclusive tariffs, the crypto meltdown has escalated to a significant extent. Due to this geopolitical uncertainty, the digital assets including Bitcoin ($BTC) have experienced a massive downturn.

Crypto Market Undergoes Massive Upheaval Triggered by Trump’s Tariff Declaration

Sentiment’s report says that, on the 2nd of April, Trump announced a 10% blanket tariff for the imports in the “Liberation Day” policy. This includes sharp taxes on the coutries such as the EU members and China. This came as a bombshell on the financial markets, specifically crypto ecosystem. Hence, Bitcoin ($BTC) dropped by more than 8% within a few hours of Trump’s tariff announcement. Apart from Bitcoin, Ethereum ($ETH), Solana ($SOL), and the rest of prominent tokens recorded analogous pullbacks.

As a result of the tariff announcement, the crypto investors panicked amid a wide-scale fallout. Subsequently, April 4th saw the further hike in the market uncertainty as China declared a 34% counter-tariff on the imports from the U.S. On this, Trump stepped ahead and threaten to levy a staggering 104% tax on goods coming from China. Thus, the growing fear around the crypto market sent it into a deep descent. After that, instead of a recovery, the situation worsened as the real chaos was unleashed on the 7th of April.

According to the report from Santiment , the crypto landscape saw a brief rebound before Monday’s tariff strike from the U.S. President. A key factor behind this rebound was the rumor about a pause on tariffs for up to 90 days. Particularly, Bitcoin jumped to $80.8K, showing a 4% increase, while altcoins such as Ethereum also expressed noteworthy increases.

April 7 Sees Further Drawdown as U.S. Authorities Decline Rumors of Tariff Pause

However, this recovery couldn’t be sustained as the White House released a clear denial and categorized the rumor as fake news. Following that, Bitcoin again plunged to $78K while Ethereum slumped below $3,000. Therefore, in line with the aforementioned geopolitical uncertainties, the crypto market is struggling to get back to its former position. In the meantime, a considerable threat is surrounding the worldwide economic sphere.