“Medicine” or Market Mayhem? Trump’s Tariff Blitz Sends Shockwaves
Cryptocurrency and equity markets were hit hard over the weekend as U.S. President Donald Trump imposed sweeping new tariffs on all trading partners, rattling global investors and sending Bitcoin and major altcoins sharply lower.
Beginning April 5, the Trump administration enacted a 10% base tariff on all imports, with elevated rates for key regions: China (34%), the European Union (20%), and Japan (24%). Trump defended the decision as necessary “medicine” to fix what he described as unsustainable trade deficits.
“They are already in effect, and a beautiful thing to behold,” Trump declared via Truth Social, insisting that tariffs are now generating tens of billions of dollars
REPORTER: “Is there pain in the market at some point you’re unwilling to tolerate?”@POTUS: “I think your question is so stupid. I don’t want anything to go down, but sometimes you have to take medicine to fix something — and we have been treated so badly by other countries.” pic.twitter.com/09QBmfqzYF
— Rapid Response 47 (@RapidResponse47) April 6, 2025
Bitcoin, Ether Lead Crypto Drop as Sentiment Turns Fearful
In response to the heightened geopolitical uncertainty, Bitcoin (BTC) dropped over 6%, briefly dipping below $77,900, while Ether (ETH) shed more than 12% in the same period. The broader crypto market cap declined over 8%, hitting approximately $2.5 trillion before staging a modest recovery.
As of writing, Bitcoin has bounced back to around $78,000, while Ether trades near $1,594, indicating some stabilization amid ongoing market stress.
The Crypto Fear & Greed Index dropped to 23, signaling “extreme fear”, reflecting bearish sentiment after one of the sharpest weekend sell-offs in recent months.
“There’s no mystery behind the trigger,” said Charlie Sherry, Head of Finance at BTC Markets.
“Trump’s tariff talk has rattled macro markets, with global trade relations suddenly looking uncertain.”
Sherry added that Sunday illiquidity likely amplified the price movement:
“A few large sell-offs can have a disproportionate impact, pushing prices down quickly.”
U.S. Stocks Enter Bear Territory
Crypto wasn’t the only casualty. U.S. stock futures plunged as well:
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S&P 500 futures dropped nearly 4%
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Nasdaq futures slid significantly
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Dow Jones Industrial Average futures fell by over 8%
According to The Kobeissi Letter, S&P 500 futures officially entered bear market territory, with U.S. markets now erasing an average of $400 billion in market cap per trading day for 32 consecutive sessions.
Venture capitalist Tom Dunleavy suggested this may be shaping up to be the “worst three-day move for U.S. stocks of all time” if futures losses hold into Monday’s session.
Will Tariffs Backfire — or Fuel a Bitcoin Rebound?
While many investors are de-risking across asset classes, some crypto traders are beginning to look for opportunity.
BitMEX co-founder Arthur Hayes suggested that extreme economic nationalism and the threat of currency devaluation may eventually benefit Bitcoin as a non-sovereign, deflationary asset.
Billionaire investor Bill Ackman speculated that Trump could still delay or adjust the tariffs if trading partners return to the negotiating table. According to National Economic Council Director Kevin Hassett, over 50 countries have already reached out to the U.S. to explore new trade arrangements.
Meanwhile, Treasury Secretary Scott Bessent urged foreign governments to avoid retaliation, warning that this tariff round is already “the high end of the number.”
Final Thoughts: Bitcoin at a Crossroads
The market reaction to Trump’s aggressive tariff expansion highlights the fragility of both traditional and digital asset markets in a high-volatility, policy-driven environment.
With Bitcoin now hovering around $78,000, investors face a critical question: Is this the start of a deeper correction, or the kind of macro trigger that ultimately validates Bitcoin’s role as a hedge against global economic instability?
For now, the crypto market remains on edge—watching Washington, and waiting for the next move.
