Cryptocurrency prices experienced a significant downturn following the announcement of potential trade wars between the U.S. and its major trading partners. This resulted in a drop of over 10% in the values of some well-known digital assets. Bitcoin, the most popular cryptocurrency, fell below $100,000 after U.S. President Donald Trump revealed plans to impose substantial tariffs on goods from Canada, Mexico, and China.
Bitcoin's value plummeted to around $92,000 on Sunday night but managed to rebound to approximately $99,000 by Monday morning after Trump declared a temporary halt on the tariffs concerning Mexican goods. Other prominent cryptocurrencies such as Ethereum, dogecoin, and various others also witnessed significant price declines, with some experiencing drops exceeding 10% following Trump's tariff announcement over the weekend.
Even Trump's own meme coin, which he introduced just before assuming office, suffered a substantial decrease in value. Independent cryptocurrency analyst Garrick Hileman noted that these alternative cryptocurrencies are considered riskier compared to bitcoin, highlighting the notable price gap between them.
The global financial markets experienced a sell-off in anticipation of Trump's impending tariffs. Trump cautioned Americans about potential economic discomfort resulting from the tariffs, emphasizing that the sacrifices would be worthwhile for the country's prosperity. He further hinted at the likelihood of imposing import taxes on the European Union and potentially the United Kingdom as well.
Bitcoin, established in 2009 as a decentralized form of electronic cash, has transitioned from the fringes of finance to mainstream acceptance in recent years. Its price movements have often mirrored those of tech stocks. Trump's meme coin was trading at approximately $19 on Monday, marking a 75% decline from its peak following the coin's launch before his second inauguration.
Similarly, the meme coin associated with First Lady Melania Trump experienced a substantial drop of nearly 90% from its all-time high and is currently valued at around $1.50. Meme coins, known for their extreme volatility, typically originate as humorous tokens lacking intrinsic value but can surge in price if demand increases.
Despite his initial skepticism towards cryptocurrencies, Trump has since embraced digital assets both for personal gain and as a component of government policy. He has pledged to position the U.S. as a global hub for crypto and has appointed several crypto-friendly officials to key governmental roles. The cryptocurrency market has witnessed a surge in value since Trump's election, with bitcoin still hovering near its peak of $109,000.
