US President Donald Trump announced reciprocal tariffs against every country with a trade relationship with the US.
Trump said the US would enact varying tariff percentages against each country based on the tariffs they impose on American goods.
The news led to a significant spike in volatility across major markets, including crypto, which saw the announcement wipe out the gains recorded from a significant rally earlier in the day.
Bitcoin (BTC) initially climbed to $88,500 as Trump took the stage but quickly crashed back to the daily opening price of around $85,100 before sliding again after the speech.
Based on CryptoSlate data, BTC remains in a downtrend and was trading at $84,382 as of press time, down 0.99% over the past 24 hours.
Legacy risk markets, including equities, saw similar volatility, while gold, considered a safe-haven asset, climbed back to its all-time high near $3,100.
The wider crypto market saw similar movements, with the vast majority of digital assets wiping the day’s gains to trade in the red.
Ethereum (ETH) was down 1.66% for the day and trading at $1,880 as of press time after climbing to $1,957 earlier in the day.
Solana (SOL) was down 1.59% for the day and trading at $128.3 as of press time, while BNB was down 2.16% and trading at $597 over the same period.
XRP was trading at $2.09, down 2.55%, while Dogecoin (DOGE) fell 2.45% to $0.1688.
Investors have been cautious about exposure to risk assets for several weeks due to the lack of clarity around Trump’s tariff plans.
While the initial reaction to the news has been negative for Bitcoin and equities, the resulting clarity around the tariffs could alleviate the market uncertainty that has held investors at bay.
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