- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Tariff threat affects Bitcoin and Ethereum prices immediately.
- Institutional funding challenges grow due to increased risk aversion.
Lede: Donald Trump’s announcement to increase tariffs on April 2, 2025, triggered a substantial downturn in cryptocurrency markets globally.
Nut Graph: The event highlights cryptocurrency vulnerability to geopolitical tensions, with direct market implications and investor sentiment shifts.
Section 1
Donald Trump’s threat to increase tariffs led to a sharp decline in crypto values on April 2, 2025. Noteworthy was Bitcoin’s fall from near $88,000 to the $70,000 range, illustrating market fragility. Bitcoin drops below $80,000 due to global uncertainty
The new tariff regime introduced duties of 10% on imports, with higher rates for China and the EU. Markets reacted sharply, and short-term investors faced increased volatility and uncertainty.
Section 2
The announcement caused a liquidity crunch as investors shifted funds out of speculative assets, reducing market capitalization. Major assets like Ethereum and XRP also experienced substantial price declines.
Stocks such as Coinbase and Robinhood reported notable declines, emphasizing the broader financial impact across sectors. The downturn highlighted the crypto sector’s interconnectedness with traditional markets.
Ben Ritchie, Managing Director, Alpha Node Global, – “The market appears to have priced in tariff tension to some extent but sentiment remains fragile. As a result, headlines related to tariffs or trade tensions can still trigger some outsized reactions, especially among short-term or weak-handed investors.”
Section 3
No major funding announcements for DeFi protocols followed, indicating the market’s conservative outlook. Institutional investment hesitancy increased amid the geopolitical uncertainty.
Historical patterns suggest crypto values correlate with larger market trends during geopolitical strains. Tariff tensions previously influenced shifts toward stablecoins, underscoring investor risk aversion. Trump declares national emergency for competitive edge and security
