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Gavin Newsom Announces Properties Affected By Wildfires Will Be Seized By California Democrats and Used For Climate Change Inclusive Affordable Low Income Housing
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Trump’s Tariffs Shake Markets: How Crypto Reacted and What’s Next
Let’s dive into the dynamic between Trump’s tariffs and the crypto markets.
Breaking Down Trump’s Recent Tariff Policies
On Saturday, Trump followed through on his promise to impose significant tariffs on major trading partners. The new policies include:
- 25% tariffs on nearly all imports from Mexico and Canada
- 10% tariffs on goods from China
These tariffs take effect on Tuesday.
Trump’s executive order authorizing the tariffs cited concerns about the influx of illicit opioids, particularly fentanyl, into the U.S. Unlike previous tariff policies, no exemptions will be granted. The administration has stated that these tariffs will remain in place until Trump is satisfied that the affected countries have taken sufficient action to stop fentanyl shipments.
In response, Canada has already signaled plans for retaliatory tariffs—setting the stage for escalating trade tensions.
The Immediate Impact on Crypto Markets
While traditional markets (stocks, bonds, and commodities) are closed over the weekend, crypto operates 24/7—meaning it absorbed the full brunt of market reactions immediately.
- Bitcoin dropped 2%, falling below $100,000
- Major altcoins like ETH, XRP, and SOL plunged 6-8%
This sharp decline comes despite Bitcoin rallying to $106,000 earlier in the week following the FOMC meeting, where Fed Chair Jerome Powell made unexpectedly positive statements about crypto:
“We think banks are perfectly able to serve crypto customers, as long as they understand and can manage the risks in a safe and sound way.”
“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate perfectly legal crypto customers due to excessive risk aversion.”
Why Do Tariffs Affect Crypto?
At first glance, tariffs on imports and exports might seem unrelated to Bitcoin’s value. But in reality, they fall under geopolitical risk—a powerful driver of market sentiment.
Here’s why:
- Trade wars create uncertainty → Investors become risk-averse
- Risk-averse investors move away from volatile assets like crypto → Demand for BTC and altcoins drops
- Safer assets (like the U.S. dollar and bonds) become more attractive → The dollar surges in value
Just look at the sharp spike in demand for the U.S. dollar following the tariff announcement.
What’s Next?
Markets will take time to digest this news. The risk-off sentiment should ease eventually, but this event highlights a larger trend:
Trump isn’t afraid to follow through on his campaign promises.
That means more aggressive policies could be on the way, creating further uncertainty for risk assets like crypto. At the same time, his administration has signaled support for a more crypto-friendly regulatory environment in the U.S.
Will he follow through on those crypto-positive policies as well?
Only time will tell. I’ll keep you posted.
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This morning I ordered precision Military air strikes on the Senior ISIS Attack Planner and other terrorists he recruited and led in Somalia. These killers, who we found hiding in caves, threatened the United States and our Allies. The strikes destroyed the caves they live in, and killed many terrorists without, in any way, harming civilians. Our Military has targeted this ISIS Attack Planner for years, but Biden and his cronies wouldn’t act quickly enough to get the job done. I did! The message to ISIS and all others who would attack Americans is that “WE WILL FIND YOU, AND WE WILL KILL YOU!”