Traditional financial markets saw sharp losses after former President Donald Trump announced sweeping global tariffs, triggering the worst trading week since 2020 for the Dow, Nasdaq, and S&P 500.
The selloff spilled into crypto, with Bitcoin mining stocks dropping by up to 15% and spot Bitcoin ETFs seeing nearly $100 million in outflows. Altcoins were hit even harder, though Bitcoin began to rebound on Friday, rising 2.2% to $84,000, with XRP, Solana, and Dogecoin also posting gains.
Experts say the downturn is politically driven, not a sign of deeper economic issues. Pantera Capital’s Cosmo Jiang noted that crypto remains borderless and less directly impacted by tariffs, potentially allowing for a quicker recovery. Standard Chartered analysts suggested Bitcoin could be evolving into a hedge against U.S. economic isolation.
The new tariff policy, starting April 5, includes a 10% baseline on imports and up to 49% on certain nations, which Fed Chair Jerome Powell warned may raise inflation and slow growth. Institutional investors remain cautious, holding off until clear crypto legislation is passed, though Trump is pushing for stablecoin regulations by August.
Despite recent volatility, Ledn CIO John Glover believes Bitcoin remains technically strong and on track for another rally, as long as it holds above $62K. However, the uncertain macro environment may delay crypto IPO plans, with firms waiting for more stable conditions before going public.
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