Crypto Carnage: Bitcoin, Ethereum, XRP, Dogecoin Plunge on Tariff News

Ladies and gentlemen, buckle up! The crypto market is in freefall, and it's all thanks to the latest tariff news from President Trump. Bitcoin, Ethereum, XRP, and Dogecoin are all taking a beating, and it's time to understand why and what you should do about it.



First things first, let's talk about the elephant in the room: tariffs. President Trump's announcement of a 25% tariff on cars not made in the USA has sent shockwaves through the global financial system. The crypto market is no exception, with Bitcoin struggling to defend the support level at $85,000 following a 2.4% dip in 24 hours. Ethereum and XRP have fallen by 6%, while Dogecoin price has experienced the biggest single-day loss of 7% despite analysts sharing a positive DOGE outlook.

But it's not just the tariffs. The Personal Consumption Expenditure (PCE) inflation data release on March 28, 2025, contributed to heightened market anxiety. Traders are closely watching this data to assess the Federal Reserve's decision on interest rates, which can significantly impact risk assets like cryptocurrencies. The ongoing tariff war sparked by President Donald Trump has weakened the US economic outlook, causing jitters in the crypto market.



Now, let's talk about the Crypto Fear and Greed Index. It has reached a multi-year low reading of 17, indicating 'extreme fear.' This level of fear suggests that investors are overly pessimistic, which can lead to further selling pressure. The market is in a state of panic, and it's time to act.

So, what should you do? First, stay calm. Panic selling is the enemy of the investor. Second, look for opportunities. When the market is in a state of fear, it's often a good time to buy. Third, diversify your portfolio. Don't put all your eggs in one basket. Spread your investments across different cryptocurrencies and other assets.

In conclusion, the recent sell-off in the cryptocurrency market has been driven by a combination of macroeconomic concerns, geopolitical tensions, market sentiment indicators, and technical factors. These factors have led to significant price declines and increased market volatility, similar to historical market corrections but with unique triggers and reactions. Stay informed, stay calm, and stay invested. The crypto market is volatile, but it's also full of opportunities. Don't miss out!