WASHINGTON, April 7 - President Trump's sweeping new tariffs have sent shockwaves through global markets, with cryptocurrency assets taking a particularly severe hit. The executive order, signed April 2, established a 10% baseline tariff on all imports, with additional reciprocal tariffs scheduled for April 9.
"This is economic warfare," declared billionaire investor Bill Ackman in a fiery X post. "The markets weren't prepared for this level of escalation." Bitcoin briefly dipped below $80,000 before recovering, while altcoins saw declines of 15-30% across the board.
The crypto market capitalization dropped by $210 billion in 24 hours as traders fled to stablecoins and cash equivalents. "We're seeing the most significant liquidation event since the FTX collapse," said CoinGlass analyst Miranda Cheng. "Over $1.2 billion in long positions were liquidated yesterday alone."
"I built the greatest economy in history, and now I'm taking it back from China. These tariffs will make America wealthy again, and yes, that includes our crypto industry too." — President Donald Trump
The White House has remained defiant amid the market turmoil. "President Trump warned repeatedly that he would take strong action to protect American workers," Press Secretary Karoline Leavitt told reporters. "The markets will adjust." Treasury Secretary Steven Mnuchin reportedly urged Trump to phase in the tariffs more gradually, but was overruled.
Crypto mining stocks were among the hardest hit, with Marathon Digital (MARA) and Riot Platforms (RIOT) both down over 25% since the announcement. "The tariffs directly impact our hardware costs," complained Marathon CEO Fred Thiel. "We're looking at 15-20% higher expenses for new mining equipment."
Interestingly, Trump's own TRUMP memecoin has shown relative stability, dropping just 8% compared to double-digit losses across most altcoins. "There's irony in the fact that the politician who caused this crash has the most resilient token," noted CoinMarketCap analyst Glen Goodman.
The tariffs come at a delicate time for crypto markets. Analysts had been predicting a consolidation phase after Bitcoin's record run to $89,000 in March. "This was the pin that burst the bubble," said JP Morgan's Nikolaos Panigirtzoglou. "Leverage had gotten too high across derivatives markets."
Asian markets reacted particularly violently, with South Korean exchanges seeing Bitcoin trade at a $3,000 discount to global averages at one point. "The won is getting crushed, and crypto is the release valve," explained Bithumb CEO Lee Jung-hoon. Chinese mining operations face a double whammy of both import tariffs on equipment and potentially retaliatory measures from Beijing.
In a bizarre twist, UFC star Conor McGregor chose yesterday to launch his REAL memecoin. The ill-timed debut saw the token raise just $144,530 of its $3.6 million target. "Maybe not the best day for a token launch," McGregor conceded on X.
Market makers report unprecedented volatility. "The bid-ask spreads widened to levels we haven't seen since COVID," revealed Jane Street crypto trader Mark Rubinstein. "Liquidity evaporated for anything outside of BTC and ETH."
Some see opportunity in the chaos. "We're buying this dip aggressively," said Cathie Wood of ARK Invest. "Bitcoin remains the best hedge against geopolitical instability, even when it's US-instigated instability." Her firm purchased $28 million worth of BTC yesterday across its ETFs.
As the dust settles, all eyes turn to June 1 when FTX is set to begin repayments. Nearly 400,000 creditors still haven't completed KYC verification, risking $2.5 billion in potential claims. "Another Trump-shaped curveball could make that process even messier," warned bankruptcy attorney David Adler.
Technical analysts point to key support levels that held during the selloff. "Bitcoin bouncing firmly off $79,500 tells me this is more about leverage flushing than fundamental weakness," said TradingView's James Stanley. Ethereum held the $3,800 level despite briefly dipping to $3,745.
The memecoin sector was decimated, with popular tokens like PEPE, WIF, and BONK all down over 35%. "This could mark the true end of the memecoin supercycle," predicted Nansen's Nicolai Sondergaard. "When liquidity gets tight, speculative assets get hit first."
Institutional players appear divided. While some hedge funds were reportedly dumping positions, blockchain data shows persistent accumulation by large Bitcoin holders. "The whales aren't selling," noted Glassnode's James Check. "This is largely a derivatives and retail-driven panic."
Crypto politics have taken center stage. The Blockchain Association blasted the tariffs as "anti-innovation," while Senator Cynthia Lummis (R-WY) urged calm: "Bitcoin has survived worse. American crypto will adapt and emerge stronger."
Miners face tough choices. "We can either absorb the higher equipment costs or delay upgrades," said Riot's Jason Les. Some operations may relocate to countries with cheaper import costs, potentially reshaping the mining geography yet again.
As the world waits to see if Trump will delay the April 9 tariff escalations, one thing is clear: crypto markets now move to the rhythm of Washington politics as much as to halvings and ETF flows. In this new era, the "Trump put" may replace the "Fed put" as the market's most watched indicator.