The imposition of broad tariffs by US President Donald Trump caused Bitcoin and other cryptocurrencies to decline in value while damaging investor confidence in volatile assets. Bitcoin experienced a four percent decline to reach $82,000 during Thursday morning.
The Ethereum price dropped 2.96 percent to reach $1,823.34 while XRP lost 2.21 percent of its value to trade at $2.05. The Solana price experienced the largest decline when it lost more than nine percent of its value.
The cryptocurrency market experienced a downturn after Trump declared his intention to impose 10% tariffs on all US imports and 60 nations with substantial trade imbalances. The duty rates imposed on China amount to 34 percent while India faces 26 percent and Japan must pay 24 percent and the European Union must pay 20 percent.
Cryptocurrencies face challenges as risk-on assets during times of policy-driven uncertainty according to John Wu who serves as president of Ava Labs. The price of gold reached its highest point at $3,160 per ounce which solidified its position as a safe investment during uncertain times.
Short-term market dips will occur because of both tariffs and the unpredictability that these measures indicate according to Ben Kurland who serves as CEO of DYOR. Global trade uncertainty keeps investors in a state of caution.
