Bitcoin drops 10% to $83,700 as Trump’s tariffs shake markets; Solana, Ethereum plunge up to 25%
Bitcoin and other major cryptocurrencies slumped on Tuesday as investor optimism over a proposed US Crypto Strategic Reserve faded. The decline also came amid escalating trade tensions, with US President Donald Trump confirming tariffs on Canada, Mexico, and China would take effect within hours.
Investors turned risk-averse after Trump announced that 25% tariffs on Canada and Mexico, along with a doubling of China levies to 20%, would be implemented from 05:01 GMT on Tuesday. Market concerns were further fueled by signs of economic strain, with U.S. factory gate prices hitting a nearly three-year high and supply chain disruptions intensifying.
Vikram Subburaj, CEO of Giottus, noted, «Bitcoin has surrendered its weekend gains and is trading within a tight range of $82,000 to $85,000 as investors assess the impact of upcoming U.S. tariffs. Market volatility is expected to persist, particularly as these tariffs take effect later today.»
As of 10:45 AM IST, Bitcoin was down 9.8% at $83,725, while Ethereum plunged 15% to $2,083. The global crypto market cap dropped 10.5% to $2.76 trillion in the past 24 hours. Altcoins also saw steep declines, with Cardano plunging 25%, Solana dropping 19%, Dogecoin falling 16%, and XRP losing 18%.