Tariffs impact on crypto became painfully clear this week after President Trump’s surprise tariff announcement triggered a $2.3 billion sell-off across digital assets. The sudden move rattled markets, sending Bitcoin down over 10% and Ethereum plunging 17% within 24 hours.
Global traders rushed to exit positions, wiping nearly $400 billion from the total crypto market cap. The Fear & Greed Index remained at a “Greed” level of 70 despite the turmoil, signaling investor overconfidence ahead of the shockwave.
“The tariffs highlight just how interconnected crypto has become with broader macroeconomic forces,” said Julia Hart, senior strategist at Global Digital Assets. “This $2.3 billion liquidation shows that digital assets don’t exist in isolation — geopolitical risks are now baked into market volatility.”
The tariffs also strengthened the U.S. dollar to a near two-year high and pushed gold up 7% since the start of 2025. Risk assets like cryptocurrencies faced the opposite fate, with traders forced to liquidate to cover losses. According to Bloomberg, heightened trade tensions are expected to weigh on risk markets through the rest of the quarter.
Looking ahead, analysts warn that further tariff escalations could deepen volatility. Some suggest Bitcoin may struggle to hold above $90,000 if panic selling continues, while Ethereum could remain under pressure from leveraged liquidations.
For now, the tariffs impact on crypto serves as a reminder: digital assets remain highly sensitive to global policy shocks. Investors will need to brace for continued turbulence as trade wars and monetary shifts ripple through risk markets.