The crypto market was rocked by sharp declines this morning, shortly after President Donald Trump‘s new global import tariffs officially took effect. Bitcoin (BTC) fell to just under $75,000, while Ethereum (ETH) tumbled 10%.
Smaller altcoins were hit even harder. XRP lost over 12%, while memecoins like Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB) lost an average of more than 9%.
Trade war hits confidence in crypto
Tensions in international trade are escalating rapidly, with tariffs on Chinese products increasing to 104%. Dozens of other trading partners are also facing high import tariffs. The reaction in the financial markets was not long in coming.
US Treasury bonds, normally a safe haven, are being sold en masse. The yield on the 30-year bond rose 56 basis points to 4.98% in three days. Such violence in the bond market hasn’t been seen in decades. Analysts suspect that a forced liquidation of a major player is behind it.
US 30-year yield, 3-day change Source: Bloomberg
In this climate, investors are withdrawing from cryptocurrencies en masse. The rally from earlier this week has been completely wiped out. The broader market lost about 6% of its value in one day, bringing the one-week decline to 15%.
The correlation between Bitcoin and the US stock markets remains high. When investors avoid risk, cryptocurrencies also feel the pain. The growing possibility of a protracted trade war is fueling negative sentiment.
Opportunities in the dip?
Nevertheless, some see opportunities in the current correction. Ryan Lee of Bitget Research expects Bitcoin to fall further to levels of $70,000 to $75,000 if tensions persist. At the same time, he sees this as an opportunity for long-term investors.
“It’s a good time to buy Bitcoin using dollar-cost averaging,” says Lee. “In the long term, consider altcoins like Solana (SOL) for higher returns, but be aware of the higher risk.”
Lee remains optimistic about the rest of 2025. If geopolitical calm returns and policies are more favorable for crypto, he sees Bitcoin rising toward $100,000.
At the time of writing, the Bitcoin price is at $77,737, down 2.1% in the last 24 hours. Ethereum is currently trading at $1,486, down 5.14% from the previous day.
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