The largest digital asset fell as much as 4% to about $82,000 on Thursday morning in Singapore before paring losses, while other tokens including Ether and XRP also declined. Solana had at one point shed more than 9% of its value.
Trump announced Wednesday that he will apply a minimum 10% tariff on all exporters to the US and slap additional duties on around 60 nations with the largest trade imbalances with the US. China will face a 34% rate, while the European Union will have a 20% levy and Japan is seeing a 24% tariff. Cryptocurrencies bore the announcement relatively well at first, but began to falter as traders began their day in Asia.
“As a risk-on asset, cryptocurrencies have generally traded poorly during periods of uncertainty following announcements such as steady high rates or the introduction of trade tariffs,” said John Wu, president at Ava Labs.
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BloombergA $577 billion exchange-traded fund tracking the S&P 500 (SPY) fell about almost 2.5% after the close of regular trading in the US on Wednesday — wiping out an initial rally.
“Markets will likely dip in the short term, not because of the tariffs themselves, but because of what they represent: the return of policy-driven volatility,” said Ben Kurland, CEO of crypto research platform DYOR. “Traders hate unpredictability, and this signals more is coming.”
Meanwhile, gold underscored its haven status by reaching a record of nearly $3,160 an ounce on Thursday, with bullion one of the few commodities exempted from the tariffs, according to a White House factsheet. Digital-asset enthusiasts have often framed Bitcoin as a similar kind of refuge for investors, but the original cryptocurrency has looked vulnerable in times of volatility over the past year.
“The next big move hinges on geopolitics, policy shifts, and whether traders see Bitcoin as risk or refuge,” said Rachael Lucas, a crypto analyst at BTC Markets. For Bitcoin, $80,000 is a “must-hold” level, she added.