Bitcoin took a hit today, plunging to $85,989 after former U.S. President Donald Trump announced sweeping trade tariffs on Mexico and Canada. The 25% levy on imports spooked financial markets, triggering a broad sell-off across cryptocurrencies. Traders who had anticipated crypto-specific policy updates were left scrambling as the market shifted abruptly.
Bitcoin Price Takes a Sudden Turn
Bitcoin, which had been riding bullish momentum, saw an immediate pullback following Trump’s remarks. The drop erased recent gains, with trading volumes surging as investors rushed to adjust positions.
Many leveraged traders had positioned themselves for a different kind of announcement—one related to digital assets or blockchain regulations. Instead, they were caught off guard by tariffs, leading to liquidations across major exchanges.
“The timing of this announcement couldn’t have been worse for Bitcoin bulls,” said Martin Szreter, a macroeconomic analyst. “When you have a large portion of the market expecting one thing and the opposite happens, volatility is inevitable.”
Historically, Bitcoin has been viewed as a hedge against monetary policy risks. But today’s reaction underscores its sensitivity to broader macroeconomic developments, particularly trade policy shifts.
Altcoins Face a Bigger Blow
As Bitcoin stumbled, the rest of the crypto market followed. Altcoins—known for their higher volatility—felt the impact even more severely. The global crypto market cap shrank by 10.10% within hours of the tariff news.
Tokens with lower liquidity profiles took the hardest hit as investors rushed to shed risk. Among the biggest declines:
- Ethereum (ETH): Down 15.21% to $2,127.44
- XRP: Fell 15.90%
- Solana (SOL): Dropped 17.72%
- Cardano (ADA): Declined 15.57%
Sectors like gaming and metaverse tokens, already struggling for momentum, also tumbled. The sharp correction highlights the persistent reliance of altcoins on Bitcoin’s price movement.
Market Sentiment Turns Bearish
The broader sentiment in the crypto space shifted rapidly. Expectations had been running high for a U.S. regulatory update, potentially easing some of the uncertainty around digital assets. Instead, the tariff news introduced fresh concerns about economic stability and global trade relations.
Bitcoin’s price reaction suggests that despite its growing institutional adoption, it remains vulnerable to geopolitical and macroeconomic developments. While long-term supporters argue that BTC could benefit in times of financial uncertainty, its short-term price action still reflects traditional risk-off behavior.
One sentence stood out in today’s market reaction: when traditional markets shake, crypto isn’t immune.
