After a brief cool-off, Donald Trump announced a 25% tariff on auto cars is coming, offsetting Bitcoin, Dogecoin, and XRP rallies.
The digital asset market is under pressure as President Donald Trump threatens new tariffs on core trading partners globally. Drawing on the potential impact of the latest update, the market is edgy with macroeconomic implications for Bitcoin, and other top altcoins are now in the spotlight.
Bitcoin Holds as Markets Drop
Following the announcement that automobiles not produced in the United States will be slammed with heavy tariffs, the price of Bitcoin BTC $83 655 24h volatility: 1.7% Market cap: $1.66 T Vol. 24h: $53.55 B saw its growth stagnate. The building trade tensions derailed its attempt to breach the $90,000 price mark.
As reported by Coinspeaker, the crypto market faced $2.23 billion in liquidations, with Bitcoin dropping 6.5% following President Trump’s earlier tariff announcement. A similar trend is mildly playing out.
Market data shows that the coin was trading at $87,315,20, down slightly by 0.93% in the past 24 hours. President Trump’s announcement of a 25% tariff on all foreign-made cars and auto parts, set to take effect on April 2, has stirred general uncertainty in the market.
Stock markets saw ridiculous corrections following the news. For example, The S&P 500 Index (INDEXSP: .INX) fell 1.1%, while the Nasdaq Composite (INDEXNASDAQ: .IXIC) dropped 2%. The Dow Jones Industrial Average (INDEXDJX: .DJI) was not spared either, falling 0.31% to 42,454.79.
Meanwhile, gold prices were remarkably high as investors moved toward safer assets. This reflects a larger risk-off sentiment in financial markets. The precious is up 1.2% to $3,053.91
President Trump’s latest tariff threats have increased uncertainty across global markets. If the European Union and Canada retaliate, the economic strain could deepen.
This tariff war is bound to strengthen the greenback the more. A rising dollar often pressures digital asset prices as investors shift to these stable assets to avoid losing their funds.
Amid the growing concerns, traders remain focused on the Personal Consumption Expenditure (PCE) data set for release on March 28, a key measure of inflation. The Federal Reserve’s stance on interest rates could shift depending on the report’s outcome, potentially impacting risk assets like cryptocurrencies.
Altcoins Face Mixed Reactions
It is important to note that alternative cryptocurrencies exhibited mixed movements in response to the latest developments.
Dogecoin DOGE $0.16 24h volatility: 4.7% Market cap: $24.40 B Vol. 24h: $1.84 B gained 1.8%, continuing its recent bullish rally following the tariff hike update. However, real-time CoinMarketCap data shows that the coin has dropped by 3% to $0.1954.
Meanwhile, XRP XRP $2.05 24h volatility: 3.9% Market cap: $119.14 B Vol. 24h: $6.16 B dropped 4% to $2.36, making it one of the biggest losers among major cryptocurrencies.
Other major coins also joined the selloff trend. Ethereum ETH $1 820 24h volatility: 3.2% Market cap: $219.52 B Vol. 24h: $25.13 B dropped by 1.6% to $2.025, Solana SOL $118.6 24h volatility: 6.1% Market cap: $60.79 B Vol. 24h: $7.44 B lost 3% to $137.51, and Cardano ADA $0.65 24h volatility: 4.1% Market cap: $23.47 B Vol. 24h: $1.09 B declined by 1.9% to $0.7373.
Despite the current volatility, some analysts see positive signs from Asia. Institutional investors in the region continue to drive pro-crypto policies. New funds and financial products are emerging in key markets like Hong Kong and Singapore.
These developments could offset regulatory pressures in the US and support market recovery.
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