Bitcoin Drops 4.15% as Trump Tariffs Spark Market Sell-Off

Bitcoin's price experienced a notable decline following President Donald Trump's announcement of extensive tariffs. The cryptocurrency's value oscillated between $81,786.22 and $88,466.96 within the past day, ultimately closing at $81,888.94, reflecting a 4.15% decrease over the last 24 hours. This price volatility was sparked by Trump's tariff declaration, which instigated a widespread risk aversion across global markets. The tariffs triggered a market-wide sell-off, with Bitcoin dropping to $83,421, and other major cryptocurrencies also experiencing significant declines. Ethereum, for example, plummeted by over 6% to $1,797, resulting in a total loss of $150 billion in the crypto market. The impact extended beyond cryptocurrencies, as equity index futures in the US fell by more than 4%, and oil prices decreased by over $2 per barrel. The tariffs also led to $450 million in crypto liquidations as Bitcoin's price dropped from $88,500 to $83,500. This is not the first instance where Bitcoin has reacted to Trump's tariff announcements. In March, the cryptocurrency dropped by $13,000 overnight following an earlier round of tariffs. The current market reaction highlights the sensitivity of risk assets, including Bitcoin, to geopolitical events and policy changes. Analysts have pointed out that such volatility can present both challenges and opportunities for investors, depending on their risk tolerance and investment strategies. The broader financial markets also felt the impact, with a gauge of global risk assets showing significant declines. The tariffs have raised concerns about the potential for further market instability and have led to calls for greater clarity and predictability in trade policy. As the situation unfolds, market participants will be closely monitoring the impact of these tariffs on both traditional and digital assets.