In a fiery announcement that sent waves across global markets, President Donald Trump declared a sweeping 10% tariff on all imported goods. The move triggered immediate volatility—not just in stocks and bonds, but in the crypto world as well.

Bitcoin and Altcoins Feel the Shock

Bitcoin (BTC) dropped 1.6% following the announcement, sliding to $83,136. Ethereum (ETH) and XRP fared even worse, dropping 2.9% and 3.6% respectively. The sudden downturn reflects growing anxiety among investors that Trump’s aggressive trade policy could spark broader economic disruptions.

Market analysts were quick to note the synchronicity: risk assets across the board—from tech stocks to digital assets—saw sell-offs within hours of the press conference.

The Bigger Picture: Is Crypto Still a Hedge?

Trump’s tariffs raise an old question in a new way: Is crypto a safe haven or just another risk-on asset?

• If crypto reacts to macro policy shifts, how different is it from equities?
• If inflation rises due to trade tensions, could Bitcoin regain its inflation hedge narrative?
• Or is this the moment the market admits: crypto’s correlation to traditional markets is here to stay?

A Warning Shot for 2025

With U.S. elections on the horizon and Trump doubling down on nationalist economic policy, markets may need to brace for increased volatility.

For crypto investors, the message is clear: your portfolio isn’t insulated from politics.

Final Thoughts

Trump’s tariff bombshell is more than just an economic maneuver—it’s a political signal that the U.S. is entering a phase of heightened global confrontation.

Crypto may have started as a countercultural hedge against central banks, but in 2025, it moves with the same winds as Wall Street.

The myth of total independence? Shattered.

Now the real test begins: can Bitcoin grow up in a world where it’s treated like every other asset?