Crypto markets experienced a downturn following U.S. President Donald Trump's declaration of a national emergency and the implementation of sweeping tariffs. This move came as part of an ongoing trade war, with the Trump administration imposing a 10% tariff on all countries starting April 5, with some nations facing even higher rates—China at 34%, the European Union at 20%, and Japan at 24%. In his April 2 speech at the White House, Trump stated that the U.S. would charge countries "approximately half of what they are and have been charging us." Following this announcement, the crypto market initially saw a brief surge due to the news of the 10% tariff, but this was short-lived. As the full implications of the tariffs became apparent, the market dipped, with prices declining across the board. Bitcoin, which had reached a session high of $88,500, dropped 2.6% to around $82,876. Ether also saw a significant decline, dropping over 6% from $1,934 to $1,797. The total crypto market cap fell 5.3%, reaching $2.7 trillion. The Crypto Fear & Greed Index indicated an extreme fear sentiment, with a score of 25, reflecting market apprehension. Despite the immediate drop, some recovery was noted, with Bitcoin regaining 0.8% to $83,205 and Ether increasing by 1.2% to $1,810. Analysts have suggested that the surge in trading volume can be attributed to local traders adjusting their positions, but there remains caution as further retaliatory actions from international players could lead to more panic selling. Crypto analyst Rachael Lucas mentioned that the initial surge was a response to uncertainty being alleviated, while the subsequent sell-off was triggered as details emerged. U.S. Treasury Secretary Scott Bessent advised against retaliatory measures from trading partners, suggesting that stability might be found if countries refrain from adding further tariffs. Market specialist David Hernandez noted that while the tariffs were slightly higher than expected, the announcement provided necessary clarity that could potentially stabilize the market long-term. Moving forward, responses from global economies, especially key players like China and Mexico, will significantly influence market dynamics.

Crypto markets experienced a significant downturn following U.S. President Donald Trump's declaration of a national emergency and the implementation of sweeping tariffs. This announcement marked the continuation of an ongoing trade war, with the Trump administration imposing a 10% tariff on all countries starting April 5, and some nations facing even steeper rates—China at 34%, the European Union at 20%, and Japan at 24%. In his April 2 speech at the White House, Trump stated that the U.S. would charge countries "approximately half of what they are and have been charging us." Initially, the crypto market reacted positively to the news of the 10% tariff, seeing a brief surge, but as the full implications of the tariffs became apparent, the market began to dip sharply, with prices declining across the board. Bitcoin peaked at $88,500 during the session but fell 2.6% to around $82,876. Ether also faced a notable decline, dropping over 6% from $1,934 to $1,797. The total crypto market cap fell by 5.3%, reaching $2.7 trillion. The Crypto Fear & Greed Index reflected market apprehension, indicating extreme fear with a score of 25. Despite the immediate losses, some recovery was noted soon after; Bitcoin clawed back 0.8% to $83,205, and Ether gained 1.2%, rising to $1,810. Analysts attributed the surge in trading volume to local traders adjusting their positions, though caution persists as potential retaliatory actions from other international players could result in further panic selling. Crypto analyst Rachael Lucas commented that the initial surge was a reaction to alleviated uncertainty, while the subsequent sell-off was driven by the release of detailed tariff information. U.S. Treasury Secretary Scott Bessent warned against retaliatory measures from trading partners, suggesting that stability might be achieved if nations refrain from imposing additional tariffs. Market specialist David Hernandez noted that while the tariffs were slightly higher than initially expected, the announcement provided crucial clarity that could stabilize the market in the long run. He indicated that future responses from global economies, especially key players like China and Mexico, would be critical in influencing market dynamics.