Cryptocurrency prices took a hit following the news of a potential trade war between the U.S. and its major trading partners, with some well-known digital currencies dropping by more than 10%. Bitcoin fell below $100,000 after U.S. President Donald Trump announced plans on Saturday to impose significant tariffs on imports from Canada, Mexico, and China. Bitcoin dropped to around $92,000 on Sunday night, but rebounded to about $99,000 by Monday morning after Trump paused tariffs on goods from Mexico.
Other popular cryptocurrencies like Ethereum and Dogecoin also experienced notable price declines, with some falling by more than 10% since Trump’s tariff announcement. Even Trump’s own meme coin, launched before he took office, saw a significant drop.
Garrick Hileman, a cryptocurrency analyst, noted that these riskier cryptocurrencies saw more drastic price changes than Bitcoin, though he found the extent of the gap surprising.
The sell-off in cryptocurrencies was part of a broader decline in global financial markets ahead of the implementation of Trump’s tariffs. Trump warned that Americans might experience “some pain” due to the tariffs, but insisted it would be “worth the price” to make America great again. He also stated on Sunday night that import taxes would “definitely happen” with the European Union and could potentially be extended to the United Kingdom as well.
Bitcoin, created in 2009 as a form of digital currency independent of banks or governments, has gradually transitioned from being a niche financial asset to a mainstream investment. In recent years, its price movements have tended to follow trends similar to those of tech stocks.
Trump’s meme coin was trading around $19 on Monday, down about 75% from its peak shortly after he launched it before his second inauguration. Meanwhile, First Lady Melania Trump’s meme coin has experienced an even steeper decline, with its value dropping nearly 90% from its highest point and now trading at around $1.50.
Meme coins are a highly volatile segment of the cryptocurrency market, often starting as jokes with little to no intrinsic value. However, they can see significant price spikes if enough people decide to invest in them.
Formerly a crypto skeptic, Trump has since become a supporter of digital assets, viewing them both as a potential source of personal wealth and an important aspect of government policy. He has vowed to make the U.S. the global leader in cryptocurrency and has appointed several crypto-friendly individuals to key government roles.
Since Trump’s election, cryptocurrencies have seen a surge in value, with Bitcoin continuing to trade close to its all-time high of $109,000.