The Impact of Trump’s Tariff Decision on the Market: Bitcoin Drops to Intraday Low

Jakarta, Pintu News – On Monday evening, the price of Bitcoin BTC->Current BTC PriceRp 0Market Cap-Trading Volume-Circulating Supply- fell sharply after US President Donald Trump announced his plan to impose a 25% tariff on imports from Canada and Mexico, which will take effect on March 4, 2025. The announcement added pressure to the US stock market, which was already in decline in the afternoon, largely triggered by concerns over earnings from chipmaker Nvidia, which is a key player in the market.

Tariff Announcement that Shook the Market

Trump’s decision to impose tariffs on Canada and Mexico surprised many market participants. The US president stated that this policy would be very good for their countries and would bring the US back to a very strong financial condition. “These are abuses that have been going on for years. I don’t blame other countries for doing it, I blame our leadership for letting it happen,” Trump said in his statement. Trump’s assertiveness in dealing with this policy created uncertainty in global markets.

Bitcoin, which is often considered a safe-haven asset in times of economic uncertainty, has taken a hit. As of 6:58 p.m. ET, the price of Bitcoin fell to USD 91,362, dropping about 4.8% in 24 hours and 12.7% in the past month. This drop came despite Michael Saylor, CEO of MicroStrategy, stating that Bitcoin was at a “discount” after his company bought 20,356 BTC worth USD 1.99 billion.

Also Read: Ethereum (ETH) continues to slump, is there any hope of recovery? This is the analysis! (2/25/25)

Impact on Derivatives and Digital Asset Markets

The derivatives market also felt the impact, with data from Coinglass showing that USD 140 million worth of long positions vanished in just four hours. The entire digital asset sector saw significant declines, with the total crypto market capitalization falling by more than 6%, sliding below USD 3 trillion, to USD 2.99 trillion. Ethereum ETH->Current ETH PriceRp 0Market Cap-Trading Volume-Circulating Supply- and XRP also recorded declines of over 10%, while Solana SOL->Current SOL PriceRp 0Market Cap-Trading Volume-Circulating Supply- fell nearly 15% in a single trading day.

Despite Bitcoin’s price decline, there is a paradox in its movement, as Bitcoin’s market share has actually increased to 61% of the total cryptocurrency market capitalization. Despite its price drop, Bitcoin showed greater dominance in the crypto market, reflecting investors’ tendency to choose assets that are considered more stable amid global economic uncertainty. Total trading volume jumped dramatically, reaching USD 126.66 billion, an 85% jump from the previous trading session.

Conclusion

Trump’s tariff decision had a huge impact on global markets, and cryptocurrencies, particularly Bitcoin, were no exception. Although Bitcoin experienced a significant price drop, its position as the dominant asset in the market suggests that many investors still see it as a more stable option compared to other traditional assets. The decline also reflects broader market uncertainty, which could potentially affect investor sentiment in the short term.

Also Read: What Currency Will Replace the US Dollar? Bitcoin is predicted to be one of them!

That’s the latest information about crypto news today. Get more information about crypto academy from beginner to expert level only at Pintu Academy and enrich your knowledge about the world of crypto and blockchain.

Follow us on Google News to get the latest information about crypto and blockchain technology. Enjoy an easy and secure crypto trading experience by downloading Pintu Crypto via Google Play Store or App Store now.

Experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro. Click Register Pintu if you don’t have an account or click Login Pintu if you are already registered.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Bitcoin.com.“Trump’s Tariff Gambit Rattles Markets, Bitcoin Tumbles to a 91,362 Intraday Low“. Accessed February 25, 2025.
• Featured Image: Bitcoin News