Bitcoin fell on Thursday as risk sentiment soured after U.S. President Donald Trump announced a 10% universal tariff on all imports, in addition to much steeper reciprocal duties on some countries, including key trading partners.
The world’s largest cryptocurrency fell 0.8% to $83,421.50 by 01:32 ET (05:32 GMT).
Trump announces steep reciprocal tariffs; sparks global sell-off
President Trump on Thursday announced a comprehensive overhaul of U.S. trade policy, introducing a 10% universal tariff on all imported goods, effective April 5, 2025.
Trump also announced reciprocal tariffs targeting specific nations deemed to have significant trade barriers against U.S. products, set to take effect on April 9, 2025. These reciprocal tariffs are approximately half of the rates those countries impose on U.S. exports.
Under this new policy, China now faces a combined tariff of 54%, with the new 34% surcharge. Other notable tariffs include 24% on Japan, 20% on the European Union, 26% on India, and 46% on Vietnam.
Additionally, a 25% tariff on foreign-made automobiles and key auto parts is set to take effect on April 3, 2025.
These developments have heightened investor concerns about an all-out global trade war, leading to a broader risk-off sentiment in financial markets.
Major U.S. stock index futures plunged in early Asia hours on Thursday, while most Asian stock indices tumbled.
Bitcoin, often touted as “digital gold,” has at times benefited from economic uncertainty, but its recent price action suggests that it remains closely tied to broader risk appetite.
In such environments, investors typically move away from volatile assets like cryptocurrencies, favoring traditional safe-haven assets such as gold.
Gold was trading at a record high in Asian trading on Friday.
Crypto-related stock plunge in extended trading amid broader decline
Shares of crypto-related companies tumbled in extended trading on Wednesday, in line with major stock index futures.
Coinbase Global Inc (NASDAQ:COIN) shares dropped 7.5%, while Bitcoin miners such as Marathon Digital (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) slid 7.3% and 7%, respectively.
Shares of Strategy, previously known as MicroStrategy Incorporated (NASDAQ:MSTR) fell 4.6% after the bell.
Crypto price today: Solana down 3%, $TRUMP plunges 7%
Most altcoins were lower on Thursday, tracking Bitcoin losses.
World no.2 crypto Ethereum fell 1.2% to $1,832.57.
World no. 3 crypto XRP edged 0.2% lower to $2.0687.
Solana declined 3.2%, and Cardano fell 1.8%, while Polygon dropped 3.5%.
Among meme tokens, Dogecoin lost 1%, while $TRUMP slumped over 7%.