Bitcoin Plummets as Trump’s Tariff War Erases Post-Election Gains

Bitcoin Falls to $74,500 as Trump Tariffs Trigger Global Market Turmoil

  • Bitcoin has dropped to $74,500, erasing most post-election gains amid global market turmoil triggered by new trade tensions.
  • President Trump announced sweeping tariffs, including 34% on Chinese goods, prompting immediate retaliation from China.
  • Experts debate whether Bitcoin will function as a tech stock or safe-haven asset as it faces critical price support levels.

Bitcoin prices plummeted to $74,500 during early Monday trading in Asia, representing a 6.5% drop in 24 hours and wiping out most post-election gains. The cryptocurrency has since recovered slightly to hover around $77,179, according to CoinGecko data, as global markets reel from escalating trade tensions between major economies.

- Advertisement -

The sell-off follows President Donald Trump‘s announcement of sweeping new tariffs set to take effect April 9. The policy establishes a 10% baseline tariff on all imports, with higher rates for specific countries – 34% for Chinese products and 20% for European Union goods. China quickly retaliated by imposing matching 34% tariffs on all U.S. exports, triggering the worst single-day crash in China’s stock market since 2008.

Crypto Market Impact

The market turbulence has caused significant damage across crypto assets. Over $1.41 million in cryptocurrency positions were liquidated in the past 24 hours, with Bitcoin and Ethereum suffering the most severe losses, Coinglass data shows.

“Markets are reeling as the global trade war intensifies,” crypto trading firm QCP Capital wrote in a note on Monday. “While U.S. equities were already under heavy pressure last week, BTC largely weathered the storm over the weekend. However, that resilience proved short-lived.”

Tracy Jin, COO of crypto exchange MEXC, told Decrypt that Bitcoin had previously appeared stable compared to traditional markets but cautioned against misreading this as defensive strength. Jin noted that crypto markets had “simply outpaced the stock market,” with selling pressures appearing earlier, from January through March.

Bitcoin at a Crossroads

- Advertisement -

The cryptocurrency’s identity as an asset class is being tested in real-time, according to experts. Altan Tutar, CEO of MoreMarkets, told Decrypt: “Bitcoin is at a crossroads. With market volatility rising and tariffs back on the table, 2025 will be a real test: Does Bitcoin behave more like a tech stock or a safe-haven asset like Gold? So far, we’re seeing elements of both.”

From a technical perspective, Jin warned that Bitcoin faces crucial support levels, saying a “breakout of $71,000 downwards could trigger a chain of liquidations with a target in the $65,000 area.” Conversely, sustained resistance above $80,000 could signal confidence to institutional investors.

As markets await further policy developments, analysts note that worsening political climates could extend beyond market impacts to increased regulatory scrutiny, potentially limiting institutional crypto adoption, particularly in G7 nations.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest

American Engineer Drugged, Robbed in Sophisticated London Crypto Heist

An American software engineer lost approximately $123,000 in cryptocurrency after being drugged and robbed in London.The victim was targeted by an impersonator posing as...

Max Keiser Doubts New Bitcoin Treasuries’ Discipline in Bear Market

Bitcoin-focused companies are increasingly copying the treasury strategy used by Michael Saylor's Strategy.Max Keiser raised doubts about whether these newer companies can maintain commitment...

South Korea Election Puts Crypto Policy at Center of Debate

Nearly one-third of South Koreans hold digital assets, making crypto a vital issue in the upcoming presidential election.Both major parties support crypto exchange-traded funds...

Scottsdale Residents Lose $6M to Crypto Scams; Police Respond

Scottsdale residents have reported losing over $6 million to cryptocurrency Scams in 2024.Authorities say actual losses could be higher, as not all cases are...

Ethereum Bullish Patterns Signal Altseason, 55% Rally Possible

Ethereum is showing two bullish chart patterns against Bitcoin, indicating a possible 30–55% price increase. Crypto analysts say an ETH/BTC rally could spark a broad...

Must Read

What Is Bcrypt Password Hashing Function?

KEY TAKEAWAYSBcrypt is a password hashing function that transforms plain passwords into unique alphanumeric sequences.It is a one-way process, ensuring that passwords cannot be...