Trump’s New Tariffs Spark Market Turbulence, Crypto Faces Volatility

On March 25, 2025, U.S. President Donald Trump announced a new wave of tariffs targeting multiple industries, including automobiles and pharmaceuticals. The policy shift sent ripples through financial markets, triggering increased volatility across various sectors, with cryptocurrencies and stocks bearing the brunt of the impact.

The tariffs reaffirm Trump’s protectionist trade stance, reminiscent of his previous administration’s approach. The market reaction was swift—the U.S. Dollar Index climbed 0.5% as investors turned to safer assets, while the cryptocurrency market experienced a downturn. Bitcoin dipped 2% to $85,200, and Ethereum declined 3% to $3,620, reflecting cautious sentiment among investors.

Crypto Market Swings Following Tariff Announcement

Trump took to Twitter to justify the tariffs, emphasizing their role in safeguarding American industries and jobs. The financial sector responded immediately, with traditional markets shifting capital toward secure assets, causing a notable reaction in the crypto space.

Post-announcement, Bitcoin saw a 2% drop, and Ethereum declined 3%, reflecting heightened investor caution. On-chain data further indicated a 15% increase in Bitcoin outflows, signaling that some traders opted to move their assets off exchanges. Meanwhile, industry leaders offered mixed responses—Binance CEO Changpeng Zhao advised investors to maintain a long-term perspective, highlighting the resilience of digital assets.

Experts Weigh In: Could Tariffs Accelerate De-Dollarization?

Did you know?
Trump’s 2025 tariffs mirror his 2018 trade measures, which similarly led to market fluctuations in traditional finance and cryptocurrency.

Currently, Bitcoin (BTC) is trading at $87,197, reflecting a 1.77% increase over 24 hours, with a market capitalization of $1.73 trillion and a dominance of 60.66%. Trading volumes have surged by 154%, reaching $34.36 billion, according to CoinMarketCap.

Some analysts believe Trump’s tariffs could contribute to a larger trend of de-dollarization, with significant implications for global finance. BitMEX Co-founder Arthur Hayes remarked, “Trump’s tariffs could accelerate the global shift away from the U.S. dollar. In the long run, this might prove bullish for crypto, as nations look for alternative financial systems.”

Meanwhile, regulatory scrutiny remains a looming concern, with the SEC advising market participants to stay vigilant amid the ongoing turbulence.