Cryptocurrency prices experienced a decline due to concerns over a potential trade conflict between the U.S. and its major trading partners. This led to notable drops in the values of well-known digital assets, with some seeing decreases of over 10%. Bitcoin dipped below $100,000 following U.S. President Donald Trump’s announcement of imposing substantial tariffs on goods from Canada, Mexico, and China. The leading cryptocurrency fell to approximately $92,000 on Sunday night but later recovered to around $99,000 by Monday morning after Trump delayed the tariffs on Mexican goods.
Other popular cryptocurrencies like Ethereum and dogecoin also witnessed significant price declines, with some dropping more than 10% since the announcement of the tariffs over the weekend. Even Trump’s own meme coin, launched before his presidency, experienced a substantial decrease in value.
Garrick Hileman, an independent cryptocurrency analyst, noted that these cryptocurrencies are considered riskier compared to bitcoin, highlighting the significant price gap between them. The market sell-off was part of a global downturn in financial markets ahead of the implementation of Trump’s tariffs, which he suggested might cause some economic discomfort but deemed necessary for the country’s progress.
Bitcoin, introduced in 2009 as a decentralized form of electronic cash, along with other newer cryptocurrencies, has gained traction from the fringes to mainstream popularity in recent years. The price movements of bitcoin have often mirrored those of tech stocks.
Despite being a former crypto skeptic, Trump has now embraced digital assets, viewing them as a potential source of wealth and incorporating them into government policies. He has expressed ambitions to establish the U.S. as a leading hub for crypto and has appointed pro-cryptocurrency officials to key government roles.
Following the surge in cryptocurrencies post-Trump’s election, bitcoin continues to trade near its all-time high of $109,000. The value of Trump’s meme coin stood at around $19 on Monday, marking a significant decrease from its peak after the initial launch. Similarly, First Lady Melania Trump’s meme coin has also experienced a substantial drop from its peak value, currently trading at approximately $1.50. Meme coins represent a highly volatile sector within the cryptocurrency industry, often beginning as jokes with no intrinsic value but surging in price if demand rises.
