Global financial markets are reeling from the aggressive trade policies of U.S. President Donald Trump, and the cryptocurrency sector is no exception. On Monday, April 7, 2025, bitcoin, the world’s leading digital currency, plummeted to its lowest level of the year, hitting $74,524. By 2:30 p.m., it was trading at $78,493, down 2.76% for the day. This sharp decline follows a series of tariffs imposed by Trump since February, including reciprocal rates of 10% to 50% on goods from over 180 countries, which have fueled a widespread aversion to risk. While these tariffs don’t directly target cryptocurrencies, their ripple effects—higher production costs, inflation fears, and a looming trade war—have driven investors away from volatile assets like bitcoin and Ethereum, which saw a nearly 7% drop on the same day.
The downturn marks a stark reversal from the optimism that greeted Trump’s inauguration in January 2025. After winning the November 2024 election, Trump’s pro-crypto campaign promises—such as deregulation and a strategic bitcoin reserve—pushed the cryptocurrency from $94,000 to a peak of $109,000. However, the introduction of the “tariff shock” shifted market sentiment, erasing nearly 30% of bitcoin’s value since its high. In 2024, the U.S. accounted for 40% of global crypto trading volume, and investors had high hopes for a Trump-led boom. Now, with China retaliating with 34% tariffs on American goods and the European Union hinting at similar measures, the specter of a global trade war has overshadowed those expectations, sending cryptocurrencies into a tailspin.
Trump’s tariffs, intended to bolster U.S. industry, have instead unleashed economic uncertainty, impacting not just traditional markets but also the digital asset space. In New York and São Paulo, analysts note a flight to safety, with investors dumping bitcoins for U.S. Treasury bonds and other low-risk options. The dollar’s strength, up 5% against the Brazilian real since February, further complicates the picture for emerging markets, where crypto adoption has been growing. As the U.S. navigates potential inflation and economic slowdown, the crypto market braces for continued volatility, with bitcoin’s fall to $74,000 signaling a broader retreat from risk amid Trump’s trade agenda.
- Key cryptocurrencies hit today:
- Bitcoin: Down 2.76%, trading at $78,493.
- Ethereum: Plunges nearly 7% in a single day.
- Others: XRP and Solana also see sharp declines.
Trump’s tariffs rattle global markets
Since February 2025, Trump’s tariffs have upended global trade dynamics, with rates of 10% to 50% slapped on imports from over 180 countries. Designed to protect American manufacturing, these measures have instead sparked retaliation, notably from China, which imposed 34% tariffs on all U.S. goods, matching the rates applied to Chinese imports. The European Union, a significant player in global trade, is also weighing countermeasures, raising fears of a full-scale trade war. This escalating tension has driven a 3% drop in Wall Street indices over the past week, and cryptocurrencies, as high-risk assets, are feeling the heat, with bitcoin tumbling from $109,000 to $74,000 in just over two months.
The tariffs’ indirect effects are profound. Higher costs for imported goods like steel and aluminum—already targeted earlier—push up production expenses across U.S. industries, threatening inflation. In 2024, U.S. inflation closed at 3.2%, but forecasts for 2025 suggest it could climb to 4.5% if the tariffs persist. This pressure might force the Federal Reserve to hike interest rates, currently set between 4.25% and 4.50%, making Treasury bonds more appealing than volatile cryptocurrencies. In London, trading volumes for digital assets dropped 10% since the tariffs began, as investors pivot to safer havens amid fears of economic slowdown.
Emerging markets like Brazil, where 8 million people hold cryptocurrencies, are also hit hard. The dollar’s 5% rise against the real—from $5.40 in late 2024 to $5.67 in April—makes bitcoin pricier for local investors, who account for $10 billion in annual crypto trades. In São Paulo, exchanges report a 15% decline in transaction volume since February, with many opting for fixed-income options tied to Brazil’s 10.75% Selic rate. Trump’s trade policies, while aimed at strengthening the U.S., are thus reshaping investment patterns worldwide, with cryptocurrencies bearing the brunt of the uncertainty.

From crypto boom to bust under Trump
Trump’s election victory in November 2024 ignited a crypto rally, with bitcoin soaring from $94,000 to $109,000 by January 2025. His campaign rhetoric—promising deregulation, a U.S.-led crypto future, and a strategic bitcoin reserve—reversed his earlier skepticism, when he dismissed digital currencies as “not money” in a 2019 tweet. At the Bitcoin 2024 Conference in July, he rallied attendees with a vision of American dominance in crypto mining and minting, boosting market confidence. The U.S., handling 40% of global crypto trades in 2024, seemed poised for a digital asset renaissance under his leadership.
That optimism faded as Trump’s focus shifted to tariffs rather than crypto-friendly policies. Despite appointing pro-crypto figures like David Sacks as “crypto and AI czar,” tangible deregulation has yet to materialize. The strategic bitcoin reserve, leveraging 200,000 BTC seized by the U.S. government (worth $16 billion), was formalized in March but remains unimplemented. In 2024, the global crypto market hit a $2.7 trillion valuation, with bitcoin comprising half, yet its value has since shed $300 billion. In Miami, a crypto hub, trading volumes dropped 18% since February, as investors question Trump’s commitment amid his trade war priorities.
China’s 194,000 BTC hoard and Europe’s 25% share of global crypto trades add complexity. Retaliatory tariffs from Beijing and potential EU responses shrink international trade flows—down 5% in 2025 projections from 2024’s $25 trillion—curtailing risk appetite. In the U.S., where 15 million people own bitcoin, sell-offs have surged, with 20% of holders reducing positions since the tariff announcements. Trump’s pro-crypto promises, once a market driver, now clash with economic realities, leaving bitcoin vulnerable to further declines.
Tariffs’ ripple effect on cryptocurrencies
Trump’s tariffs don’t tax cryptocurrencies directly, but their fallout is undeniable. Rising import costs inflate prices across U.S. supply chains, with steel up 15% since March, pushing consumer costs higher and stoking inflation fears. In 2024, U.S.-China trade totaled $600 billion, but tariffs could slash that by 20%, slowing economic activity. If the Fed raises rates to curb inflation, Treasury yields—currently at 4%—could climb, drawing $5 billion monthly from risk assets like bitcoin, per New York estimates, as investors favor safety over volatility.
Global consumption takes a hit too. Higher U.S. prices may dampen demand, threatening the 2.8% GDP growth of 2024, with 2025 forecasts dipping to 2%. This slowdown ripples outward, reducing trade and investment flows. In Brazil, where 60% of bitcoin trades occur on international platforms, the dollar’s climb to $5.67 cuts purchasing power, with local investors slashing crypto holdings by 12% since February. In London, a 10% drop in crypto trading volume mirrors the shift to bonds and cash, underscoring how Trump’s trade war indirectly hammers digital assets.
The “gold digital” narrative of bitcoin falters in this climate. Despite its $1.5 trillion market cap in early 2025, it’s not immune to risk aversion. In Chicago, analysts note that each tariff escalation triggers a 5% bitcoin dip, as investors flee to U.S. Treasuries, whose stability contrasts with crypto’s wild swings. The interplay of inflation, higher rates, and a stronger dollar creates a perfect storm, sidelining cryptocurrencies in a market craving predictability.
Trump’s crypto vision meets trade war reality
Promising a crypto-friendly administration, Trump swept into office with bold pledges. His July 2024 Bitcoin Conference speech—“crypto will define the future, and I want it made in the USA”—and the appointment of David Sacks fueled a $109,000 bitcoin peak in January. The strategic reserve plan, tapping 200,000 seized bitcoins, aimed to cement U.S. dominance in a $2.7 trillion market. Yet, by April, tariffs eclipsed these ambitions, with no deregulation enacted and the reserve still a concept. In San Francisco, crypto firms lament a 10% funding drop since February, as Trump’s focus shifts.
The pivot reflects political calculus. With 20% of U.S. voters holding crypto in 2024, up from 15% in 2020, Trump courted this bloc, reversing his 2019 stance when he linked bitcoin to illegal activity. His election win capitalized on that shift, but tariffs now dominate, slashing bitcoin’s appeal. In New York, 25% of crypto traders cut exposure since March, per exchange data, as economic uncertainty overshadows regulatory hope. Trump’s vision, once a market catalyst, struggles against the trade war’s fallout, leaving investors wary.
Trade war escalates crypto uncertainty
The U.S.-China tariff clash, with rates at 34% each, and Europe’s looming retaliation amplify crypto woes. Global trade, at $25 trillion in 2024, faces a 5% contraction in 2025, curbing consumption and investment. In the U.S., a 15% steel price hike since March strains industries, potentially slowing the economy from 2.8% growth to 2%. Fed rate hikes loom, boosting Treasury appeal—$1 trillion invested in 2024 could rise 15%—and draining crypto liquidity. In Paris, crypto trades fell 12% since tariffs began, mirroring global trends.
Brazil’s 8 million crypto users face a $5.67 dollar, up from $5.40, cutting $50 billion in 2024 trade volume by 10%. In São Paulo, 20% shifted to 13% yield CDBs. In the U.S., Coinbase’s $500 billion 2024 volume dipped 10% in 2025, as startups scale back. The trade war’s economic drag—higher costs, slower growth—crushes crypto’s risk-driven momentum, pushing investors to safer shores.
- Pressures on crypto markets:
- Inflation fears from U.S. tariffs.
- Potential Fed rate hikes.
- Dollar strength and safe-haven shift.
Investors pivot to safety amid turmoil
Risk aversion has slashed the crypto market’s $2.7 trillion 2024 value by $300 billion since February. Bitcoin’s drop from $109,000 to $74,000, with Ethereum down 7% today, reflects this flight. In London, trading volumes fell 12%, as investors flock to U.S. Treasuries, absorbing $1 trillion in 2024. In Brazil, 25% of 8 million crypto holders sold off since tariffs hit, favoring Selic-tied funds at 10.75%. In Miami, crypto startups cut operations as funding dries up, highlighting a market retreat from volatility to stability under Trump’s trade-driven uncertainty.
Key tariff and bitcoin milestones
The tariff saga tracks bitcoin’s decline:
- February: Initial tariffs drop bitcoin from $109K to $95K.
- April 2: Reciprocal 10%-50% rates push it to $85K.
- April 7: China’s retaliation sinks it to $74,524, 2025’s low.
This timeline ties Trump’s trade moves to crypto’s woes, with each escalation deepening market unease.

Global financial markets are reeling from the aggressive trade policies of U.S. President Donald Trump, and the cryptocurrency sector is no exception. On Monday, April 7, 2025, bitcoin, the world’s leading digital currency, plummeted to its lowest level of the year, hitting $74,524. By 2:30 p.m., it was trading at $78,493, down 2.76% for the day. This sharp decline follows a series of tariffs imposed by Trump since February, including reciprocal rates of 10% to 50% on goods from over 180 countries, which have fueled a widespread aversion to risk. While these tariffs don’t directly target cryptocurrencies, their ripple effects—higher production costs, inflation fears, and a looming trade war—have driven investors away from volatile assets like bitcoin and Ethereum, which saw a nearly 7% drop on the same day.
The downturn marks a stark reversal from the optimism that greeted Trump’s inauguration in January 2025. After winning the November 2024 election, Trump’s pro-crypto campaign promises—such as deregulation and a strategic bitcoin reserve—pushed the cryptocurrency from $94,000 to a peak of $109,000. However, the introduction of the “tariff shock” shifted market sentiment, erasing nearly 30% of bitcoin’s value since its high. In 2024, the U.S. accounted for 40% of global crypto trading volume, and investors had high hopes for a Trump-led boom. Now, with China retaliating with 34% tariffs on American goods and the European Union hinting at similar measures, the specter of a global trade war has overshadowed those expectations, sending cryptocurrencies into a tailspin.
Trump’s tariffs, intended to bolster U.S. industry, have instead unleashed economic uncertainty, impacting not just traditional markets but also the digital asset space. In New York and São Paulo, analysts note a flight to safety, with investors dumping bitcoins for U.S. Treasury bonds and other low-risk options. The dollar’s strength, up 5% against the Brazilian real since February, further complicates the picture for emerging markets, where crypto adoption has been growing. As the U.S. navigates potential inflation and economic slowdown, the crypto market braces for continued volatility, with bitcoin’s fall to $74,000 signaling a broader retreat from risk amid Trump’s trade agenda.
- Key cryptocurrencies hit today:
- Bitcoin: Down 2.76%, trading at $78,493.
- Ethereum: Plunges nearly 7% in a single day.
- Others: XRP and Solana also see sharp declines.
Trump’s tariffs rattle global markets
Since February 2025, Trump’s tariffs have upended global trade dynamics, with rates of 10% to 50% slapped on imports from over 180 countries. Designed to protect American manufacturing, these measures have instead sparked retaliation, notably from China, which imposed 34% tariffs on all U.S. goods, matching the rates applied to Chinese imports. The European Union, a significant player in global trade, is also weighing countermeasures, raising fears of a full-scale trade war. This escalating tension has driven a 3% drop in Wall Street indices over the past week, and cryptocurrencies, as high-risk assets, are feeling the heat, with bitcoin tumbling from $109,000 to $74,000 in just over two months.
The tariffs’ indirect effects are profound. Higher costs for imported goods like steel and aluminum—already targeted earlier—push up production expenses across U.S. industries, threatening inflation. In 2024, U.S. inflation closed at 3.2%, but forecasts for 2025 suggest it could climb to 4.5% if the tariffs persist. This pressure might force the Federal Reserve to hike interest rates, currently set between 4.25% and 4.50%, making Treasury bonds more appealing than volatile cryptocurrencies. In London, trading volumes for digital assets dropped 10% since the tariffs began, as investors pivot to safer havens amid fears of economic slowdown.
Emerging markets like Brazil, where 8 million people hold cryptocurrencies, are also hit hard. The dollar’s 5% rise against the real—from $5.40 in late 2024 to $5.67 in April—makes bitcoin pricier for local investors, who account for $10 billion in annual crypto trades. In São Paulo, exchanges report a 15% decline in transaction volume since February, with many opting for fixed-income options tied to Brazil’s 10.75% Selic rate. Trump’s trade policies, while aimed at strengthening the U.S., are thus reshaping investment patterns worldwide, with cryptocurrencies bearing the brunt of the uncertainty.

From crypto boom to bust under Trump
Trump’s election victory in November 2024 ignited a crypto rally, with bitcoin soaring from $94,000 to $109,000 by January 2025. His campaign rhetoric—promising deregulation, a U.S.-led crypto future, and a strategic bitcoin reserve—reversed his earlier skepticism, when he dismissed digital currencies as “not money” in a 2019 tweet. At the Bitcoin 2024 Conference in July, he rallied attendees with a vision of American dominance in crypto mining and minting, boosting market confidence. The U.S., handling 40% of global crypto trades in 2024, seemed poised for a digital asset renaissance under his leadership.
That optimism faded as Trump’s focus shifted to tariffs rather than crypto-friendly policies. Despite appointing pro-crypto figures like David Sacks as “crypto and AI czar,” tangible deregulation has yet to materialize. The strategic bitcoin reserve, leveraging 200,000 BTC seized by the U.S. government (worth $16 billion), was formalized in March but remains unimplemented. In 2024, the global crypto market hit a $2.7 trillion valuation, with bitcoin comprising half, yet its value has since shed $300 billion. In Miami, a crypto hub, trading volumes dropped 18% since February, as investors question Trump’s commitment amid his trade war priorities.
China’s 194,000 BTC hoard and Europe’s 25% share of global crypto trades add complexity. Retaliatory tariffs from Beijing and potential EU responses shrink international trade flows—down 5% in 2025 projections from 2024’s $25 trillion—curtailing risk appetite. In the U.S., where 15 million people own bitcoin, sell-offs have surged, with 20% of holders reducing positions since the tariff announcements. Trump’s pro-crypto promises, once a market driver, now clash with economic realities, leaving bitcoin vulnerable to further declines.
Tariffs’ ripple effect on cryptocurrencies
Trump’s tariffs don’t tax cryptocurrencies directly, but their fallout is undeniable. Rising import costs inflate prices across U.S. supply chains, with steel up 15% since March, pushing consumer costs higher and stoking inflation fears. In 2024, U.S.-China trade totaled $600 billion, but tariffs could slash that by 20%, slowing economic activity. If the Fed raises rates to curb inflation, Treasury yields—currently at 4%—could climb, drawing $5 billion monthly from risk assets like bitcoin, per New York estimates, as investors favor safety over volatility.
Global consumption takes a hit too. Higher U.S. prices may dampen demand, threatening the 2.8% GDP growth of 2024, with 2025 forecasts dipping to 2%. This slowdown ripples outward, reducing trade and investment flows. In Brazil, where 60% of bitcoin trades occur on international platforms, the dollar’s climb to $5.67 cuts purchasing power, with local investors slashing crypto holdings by 12% since February. In London, a 10% drop in crypto trading volume mirrors the shift to bonds and cash, underscoring how Trump’s trade war indirectly hammers digital assets.
The “gold digital” narrative of bitcoin falters in this climate. Despite its $1.5 trillion market cap in early 2025, it’s not immune to risk aversion. In Chicago, analysts note that each tariff escalation triggers a 5% bitcoin dip, as investors flee to U.S. Treasuries, whose stability contrasts with crypto’s wild swings. The interplay of inflation, higher rates, and a stronger dollar creates a perfect storm, sidelining cryptocurrencies in a market craving predictability.
Trump’s crypto vision meets trade war reality
Promising a crypto-friendly administration, Trump swept into office with bold pledges. His July 2024 Bitcoin Conference speech—“crypto will define the future, and I want it made in the USA”—and the appointment of David Sacks fueled a $109,000 bitcoin peak in January. The strategic reserve plan, tapping 200,000 seized bitcoins, aimed to cement U.S. dominance in a $2.7 trillion market. Yet, by April, tariffs eclipsed these ambitions, with no deregulation enacted and the reserve still a concept. In San Francisco, crypto firms lament a 10% funding drop since February, as Trump’s focus shifts.
The pivot reflects political calculus. With 20% of U.S. voters holding crypto in 2024, up from 15% in 2020, Trump courted this bloc, reversing his 2019 stance when he linked bitcoin to illegal activity. His election win capitalized on that shift, but tariffs now dominate, slashing bitcoin’s appeal. In New York, 25% of crypto traders cut exposure since March, per exchange data, as economic uncertainty overshadows regulatory hope. Trump’s vision, once a market catalyst, struggles against the trade war’s fallout, leaving investors wary.
Trade war escalates crypto uncertainty
The U.S.-China tariff clash, with rates at 34% each, and Europe’s looming retaliation amplify crypto woes. Global trade, at $25 trillion in 2024, faces a 5% contraction in 2025, curbing consumption and investment. In the U.S., a 15% steel price hike since March strains industries, potentially slowing the economy from 2.8% growth to 2%. Fed rate hikes loom, boosting Treasury appeal—$1 trillion invested in 2024 could rise 15%—and draining crypto liquidity. In Paris, crypto trades fell 12% since tariffs began, mirroring global trends.
Brazil’s 8 million crypto users face a $5.67 dollar, up from $5.40, cutting $50 billion in 2024 trade volume by 10%. In São Paulo, 20% shifted to 13% yield CDBs. In the U.S., Coinbase’s $500 billion 2024 volume dipped 10% in 2025, as startups scale back. The trade war’s economic drag—higher costs, slower growth—crushes crypto’s risk-driven momentum, pushing investors to safer shores.
- Pressures on crypto markets:
- Inflation fears from U.S. tariffs.
- Potential Fed rate hikes.
- Dollar strength and safe-haven shift.
Investors pivot to safety amid turmoil
Risk aversion has slashed the crypto market’s $2.7 trillion 2024 value by $300 billion since February. Bitcoin’s drop from $109,000 to $74,000, with Ethereum down 7% today, reflects this flight. In London, trading volumes fell 12%, as investors flock to U.S. Treasuries, absorbing $1 trillion in 2024. In Brazil, 25% of 8 million crypto holders sold off since tariffs hit, favoring Selic-tied funds at 10.75%. In Miami, crypto startups cut operations as funding dries up, highlighting a market retreat from volatility to stability under Trump’s trade-driven uncertainty.
Key tariff and bitcoin milestones
The tariff saga tracks bitcoin’s decline:
- February: Initial tariffs drop bitcoin from $109K to $95K.
- April 2: Reciprocal 10%-50% rates push it to $85K.
- April 7: China’s retaliation sinks it to $74,524, 2025’s low.
This timeline ties Trump’s trade moves to crypto’s woes, with each escalation deepening market unease.
