Donald Trump’s new tariffs on China, Canada, and Mexico sent shockwaves through global markets, slamming crypto prices. Initially, Dogecoin (DOGE-USD) and XRP (XRP-USD) surged by 20% as traders jumped on a buy-the-dip opportunity. However, the gains evaporated when China retaliated with a 10% tariff on U.S. goods, turning the surge into a quick crash, CoinDesk reported.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Traders Grapple with Tariff-Fueled Volatility
The tariff battle left crypto markets on edge. Min Jung, a research analyst at Prestro Research, explained that although Bitcoin is often called “digital gold,” it still trades like a risk asset. Jung noted that the U.S.-China tariff standoff is pressuring Bitcoin and altcoins, just as it has affected global equities. Ben El-Baz of HashKey Global added that U.S. policies could help offset some of this damage if crypto-friendly measures are introduced.
Temporary Rebound Offers Hope
Markets rebounded somewhat after Trump paused tariffs on Canada and Mexico. Bitcoin climbed back above $100,000, while Ether rallied to $2,880, according to CoinMarketCap. Pav Hundal from Swyftx said investors are cautiously optimistic, adding, “If the shadow of tariffs continues to recede, I like Bitcoin’s chances of hitting new all-time highs.”
For now, crypto markets remain tethered to global trade uncertainty, making it crucial for investors to stay informed by tracking their favorite cryptocurrency prices on TipRanks and monitoring how they react to news developments. Click on the image below to find out more.
