Bear market: bitcoin, other cryptocurrencies fall on risk-asset slump amid Trump tariffs

Bitcoin and other major cryptocurrencies dipped after President Donald Trump imposed new tariffs on US trading partners worldwide, triggering a slump in risk assets.
The largest digital asset fell as much as 4 per cent to about US$82,000 on Thursday morning in Singapore before paring losses, while other tokens including ether and XRP also declined. Solana had at one point shed more than 9 per cent of its value.
Trump on Wednesday announced that he will apply a minimum 10 per cent tariff on all exporters to the US and slap additional duties on around 60 nations with the largest trade imbalances with the US.
China will face a 34 per cent rate, while the European Union will have a 20 per cent levy and Japan is seeing a 24 per cent tariff.
Cryptocurrencies bore the announcement relatively well at first, but began to falter as traders began their day in Asia.
“As a risk-on asset, cryptocurrencies have generally traded poorly during periods of uncertainty following announcements such as steady high rates or the introduction of trade tariffs,” said John Wu, president at Ava Labs.
A US$577 billion exchange-traded fund tracking the S&P 500 fell about almost 2.5 per cent after the close of regular trading in the US on Wednesday – wiping out an initial rally.
“Markets are likely to dip in the short term, not because of the tariffs themselves, but because of what they represent: the return of policy-driven volatility,” said Ben Kurland, chief executive of cryptocurrency research platform DYOR. “Traders hate unpredictability, and this signals more is coming.”
Meanwhile, gold underscored its haven status by reaching a record of nearly US$3,160 an ounce on Thursday, with bullion one of the few commodities exempted from the tariffs, according to a White House fact sheet.
Digital-asset enthusiasts have often framed bitcoin as a similar kind of refuge for investors, but the original cryptocurrency has looked vulnerable in times of volatility over the past year.
“The next big move hinges on geopolitics, policy shifts, and whether traders see bitcoin as risk or refuge,” said Rachael Lucas, a cryptocurrency analyst at BTC Markets. For bitcoin, US$80,000 is a “must-hold” level, she added.