Bitcoin tumbles as Trump tariff tensions escalate
Trump's remarks continue to rattle volatile crypto market
The recent crypto rally fueled by the US strategic stockpile plan was short-lived, with bitcoin tumbling nearly 10 percent as global markets reeled from uncertainty over proposed US tariffs.
As of 2:30 p.m. Tuesday, bitcoin was trading at around $84,000 globally, according to data tracker CoinMarketCap, down nearly 10 percent from the previous day, erasing $1.65 trillion in market value. In South Korea, it was trading at approximately 127 million won ($87,000), carrying a near 3 percent premium over global prices.
The pullback wiped out nearly all of bitcoin's gains from the day before, which had been sparked by US President Donald Trump's social media post reaffirming his push for a strategic crypto reserve.
"A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration," Trump wrote, adding, "We are making America great again."
The post marked his first public comment on the crypto reserve since issuing a January executive order on digital assets, which directed the President's Working Group on Financial Markets to explore the creation of a national digital asset stockpile.
In the same post, Trump named the five cryptocurrencies expected to be included in the reserve: bitcoin, ethereum, XRP, solana and cardano. His remarks ignited a sharp rally, sending bitcoin to an intraday high of $95,000, up 11 percent. Ethereum, the world's second-largest cryptocurrency, gained 13 percent, while XRP and solana surged 34 percent and 24 percent, respectively. The comparatively lesser-known cardano saw a massive 70 percent jump.
However, market skepticism quickly set in. As Trump confirmed that a 25 percent tariff on Canada and Mexico, as well as an additional 10 percent tariff on China, would take effect as scheduled on Tuesday, market uncertainty intensified, quickly reversing the crypto prices and erasing recent gains.
Altcoins were hit even harder, with ethereum dropping 15 percent and solana losing 20 percent. In total, the global crypto market lost around $330 billion in value in just one day.
The global trade crisis is expected to escalate as the US prepares to expand its tariffs. Trump also warned of mutual tariffs on countries imposing tariffs on US products, set to begin in April.
Market watchers predict that high volatility will continue in the crypto market.
"The recent remarks were significant because Trump expressed his determination to create a 'reserve,' not just stockpile digital assets," said Park Sang-hyun, an analyst at iM Securities.
"However, the rally couldn't overcome the tariff risks. For now, the cryptocurrency market, including bitcoin, is expected to experience increased volatility depending on the direction of tariff policies."
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