Crypto Sell-Off: XRP, DOGE Plummet 10% Following Trump’s Latest Tariff Announcement

Crypto Market Wipeout: Bitcoin Drops Below $80K as Trump Tariffs Shake Global Markets

The cryptocurrency market took a sharp dive on Friday as renewed U.S. tariff threats against China triggered a wave of selling across risk assets. The downturn erased all gains made since Donald Trump’s election victory in November, with investors shifting toward the relative safety of the U.S. dollar.

Bitcoin Dips Below $80K, Altcoins Lead the Drop

Bitcoin (BTC) extended its slide, dropping 7% to $79,000, its lowest level since November. The flagship cryptocurrency has now fallen nearly 30% from its January peak of over $108,000, as macroeconomic concerns continue to weigh on sentiment.

Altcoins suffered even steeper declines, with XRP and Dogecoin (DOGE) both plunging over 10%. Ethereum (ETH), Binance Coin (BNB), and Cardano’s ADA each shed more than 9%, reflecting broad-based weakness in the market. The total crypto market capitalization slipped 8% to $2.7 trillion, erasing all post-election gains.

Markets React to Tariff Shock, Risk Assets Under Pressure

Investor sentiment took a hit after Trump confirmed that a new 10% tariff on Chinese imports will take effect next week, compounding fears of a worsening trade conflict between the world’s two largest economies. The announcement sent shockwaves through global markets, with Chinese stocks tumbling and U.S. equity futures pointing lower.

“The risk environment has completely shifted,” said Augustine Fan, head of insights at SignalPlus. “Crypto had already been struggling with liquidity constraints and ETF outflows, but now we’re seeing an additional drag from global macro uncertainty.”

The CoinDesk 20 Index (CD20), which tracks the largest digital assets, slid nearly 9% as traders rushed to reposition amid the turmoil.

China’s Economic Outlook in Focus

Trump’s tariff escalation comes just days ahead of China’s National People’s Congress, where policymakers are expected to announce key economic plans. With China’s economy already under pressure from a real estate crisis and deflationary concerns, investors will be watching closely for signs of potential stimulus measures.

“How China responds to these tariffs will be a major determinant of market direction,” Fan noted. “If Beijing steps in with aggressive fiscal or monetary support, it could help stabilize sentiment, but uncertainty remains high.”

Bearish Signals Mount in Crypto Markets

With risk appetite deteriorating, crypto traders are turning defensive.

“Options traders are piling into downside protection, with put volumes rising sharply as bullish sentiment fades,” Fan added. “We’re also seeing signs of capitulation, with leveraged positions unwinding at a faster pace.”

Adding to the pressure, MicroStrategy’s (MSTR) stock fell 10%, raising concerns about the sustainability of its Bitcoin-heavy strategy. Given MSTR’s role as a bellwether for institutional Bitcoin demand, further losses could exacerbate downside risks for BTC.

For now, the market remains on edge, with traders closely monitoring macroeconomic developments for potential catalysts in the coming days.

About The Author

ctleditor

See author's posts