Source: Cointelegraph Original: "{title}"
After U.S. President Donald Trump declared a "national emergency" and imposed comprehensive tariffs on all countries, the cryptocurrency market experienced a decline. This is the latest move by the Trump administration in the ongoing trade war.
The Trump administration announced a 10% tariff on all countries starting April 5, with some countries facing higher tariffs, such as China at 34%, the European Union at 20%, and Japan at 24%.
In a speech delivered in the Rose Garden of the White House on April 2, Trump stated that the charges imposed by the U.S. on other countries are "about half of what they have charged us in the past and present."
🚨 @POTUS signs an Executive Order instituting reciprocal tariffs on countries throughout the world. It's LIBERATION DAY in America! pic.twitter.com/p7UnfE617B
The cryptocurrency market briefly surged upon hearing the news of the 10% comprehensive tariff, but as the details of the policy were fully disclosed, the market saw a widespread decline.
Bitcoin (BTC) prices had been rising, reaching an intraday high of $88,500, but then fell by 2.6% to around $82,876. Meanwhile, according to CoinGecko, Ethereum (ETH) prices dropped over 6% from $1,934 to $1,797 following the announcement of the tariff policy. The total market capitalization of the cryptocurrency market decreased by 5.3% to $2.7 trillion.
The Crypto Fear & Greed Index showed a market sentiment score of 25 in its latest update on April 2, categorized as "extreme fear."
However, market prices have begun to gradually recover. Bitcoin prices rebounded by 0.8% to $83,205; Ethereum prices increased by 1.2% to $1,810.
The Crypto Fear & Greed Index averaged a score of "fear" over the past week but has now dropped to "extreme fear." Source: Alternative.me
The stock market also did not escape unscathed. The trading resource platform The Kobeissi Letter stated in an X post on April 2 that the stock market index S&P 500 saw its market value evaporate by over $2 trillion, averaging about $125 billion per minute.
Rachael Lucas, a crypto analyst at Australian cryptocurrency exchange BTC Markets, stated that the brief market surge was due to "eliminating uncertainty," followed by a sell-off after the details of the tariffs were announced.
She said in a statement: "On the BTC Markets platform, trading volume surged by 46%, as local traders rushed to reposition. Big players took profits during the market rise, while small investors hesitated."
Source: Daan Crypto Trades
She added that if China or the EU "retaliates strongly," it could trigger a new round of panic selling.
U.S. Treasury Secretary Scott Bessent urged America's trading partners not to retaliate in an interview with Bloomberg on April 2. He believes that if no further tariffs are attempted, the current tariff levels are already in the "high-end range," which could provide the market with a "ceiling" and certainty.
David Hernandez, a crypto investment expert at crypto asset management firm 21Shares, told Cointelegraph that the market experienced significant volatility during Trump's speech, but in the long run, the clarity of the policy could be a good thing.
He said, "Although the tariff rates are slightly higher than expected, this announcement provides much-needed clarity on the scope and scale of the policy."
"The market relies on certainty, and as most speculation is eliminated, institutional investors may see opportunities in the coming days to take advantage of compressed valuations."
Hernandez also noted that the global response will be key to the market's future development and speculated that Mexico and major East Asian economies, including China, South Korea, and Japan, may be assessing countermeasures.
Related: Trump imposes 10% tariffs on all countries and implements reciprocal tariffs on trading partners.
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