Major Cryptocurrencies Plunge 21% After Trump’s Tariff Announcement
Market Analysis
Just days after a dramatic surge fueled by President Donald Trump’s announcement of a U.S. crypto strategic reserve, major tokens Cardano’s ADA, XRP, and Solana’s SOL plummeted 21%. This sudden reversal erased all gains sparked by the initial excitement.
Market Reaction
The sharp decline aligned with a cautious mood among traders after Monday’s market rally following the ambitious plan. As a CoinDesk analysis noted, the market was already primed for a correction, and the tariff announcements from China and the U.S. President only exacerbated the situation.
Trump’s Tariff Announcement
On Sunday, Trump declared that the reserve would include ADA, XRP, and SOL, alongside bitcoin (BTC) and ether (ETH), igniting a market frenzy. The promise of a government-backed crypto stockpile was hailed as a game-changer, with analysts predicting it could legitimize digital assets and drive institutional adoption.
Rally Proves Short-Lived
However, the rally proved short-lived amid profit-taking and a general risk-off mood in broader equity markets. The announcement of a 15% tariff on import goods from China, doubling the tariff on imports from China to 20%, and imposing 25% tariffs on goods from Mexico and Canada, sent shockwaves through global markets.
Cryptocurrency Market Reaction
As a result, Bitcoin lost 9% in the past 24 hours, trading at $84,000 as of Asian afternoon hours. Ether lost 12% and trades just above $2,000 – its lowest since 2023.
White House Crypto Summit
The White House Crypto Summit, scheduled for Friday, is now expected to provide more clarity – or further turbulence – depending on what emerges from the talks. Investors are bracing themselves for more uncertainty as the market navigates the complex web of economic and regulatory developments.
Frequently Asked Questions
Q: What triggered the sudden plunge in cryptocurrency prices?
A: The announcement of tariffs on imports from China, Mexico, and Canada, as well as a general risk-off mood in broader equity markets, contributed to the decline.
Q: How did the market react to the tariff announcements?
A: The market reacted negatively, with major cryptocurrencies such as ADA, XRP, and SOL plummeting 21%.
Q: What is the impact of the tariff announcements on the global economy?
A: The tariffs have sent shockwaves through global markets, with concerns over trade and economic uncertainty growing.
Q: What is the significance of the White House Crypto Summit?
A: The summit is expected to provide more clarity on the government’s stance on cryptocurrencies and potentially drive further institutional adoption.
Q: How have the major cryptocurrencies performed in the past 24 hours?
A: Bitcoin lost 9%, while ether lost 12% – its lowest since 2023.
Q: What is the current price of major cryptocurrencies?
A: Bitcoin is trading at $84,000, while ether is trading just above $2,000.
