Trump’s targeted reciprocal tariffs cancel Bitcoin rally, erase the day’s gains

The President of the United States, Donald Trump, has declared reciprocal tariffs on all nations with which the US has a trade relationship.

According to Trump, the US will implement different tariff rates for each country, contingent on the tariffs they levy on American products.

This announcement triggered a notable increase in market volatility, impacting major sectors, including cryptocurrencies, which experienced a loss of gains achieved during a robust rally earlier in the day.

Bitcoin (BTC) initially surged to $88,500 when Trump began speaking, but quickly fell back to its daily opening price of about $85,100, only to decline further after his address.

As reported by CryptoSlate, BTC continues to trend downward and was priced at $84,382 as of the latest update, reflecting a 0.99% decrease in the last 24 hours.

Traditional risk markets, including stocks, exhibited similar fluctuations, while gold, often viewed as a safe asset, rose back to its peak near $3,100.

The broader cryptocurrency market mirrored this behavior, with most digital currencies erasing their daily gains and trading in negative territory.

Ethereum (ETH) dropped 1.66% for the day, trading at $1,880 after an earlier rise to $1,957.

Solana (SOL) fell by 1.59%, trading at $128.3, while BNB saw a decline of 2.16% to $597 in the same timeframe.

XRP was priced at $2.09, down 2.55%, and Dogecoin (DOGE) decreased by 2.45%, trading at $0.1688.

Investors have exercised caution regarding risk assets for several weeks due to uncertainty surrounding Trump’s tariff intentions.

While the market’s immediate response has been negative for both Bitcoin and equities, the potential for increased clarity on tariffs might help reduce the market uncertainties that have kept investors hesitant.

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