Bitcoin and Ether plummet over 10% amid tariffs

Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) experienced significant declines on March 4, 2025, with Bitcoin falling 10% to $83,704 and Ethereum dropping 14.7% to $2,082.

This reversal follows a brief rally sparked by U.S. President Donald Trump's announcement of a crypto strategic reserve over the weekend.

The downturn is largely attributed to Trump's confirmation of tariffs on Canadian and Mexican imports, which took effect on March 4.

These tariffs have exacerbated risk-off sentiment, impacting not only cryptocurrencies but also broader financial markets.

The Dow Jones and SP 500 also saw significant losses, with the latter shedding $1.5 trillion in market cap.

Peter Chung, head of research at Presto Research, noted that weak macroeconomic data and Trump's tariff rhetoric have dragged risk assets down.

The Atlanta Fed's GDPNow forecast, which predicts a -2.8% real GDP growth for Q1, has further stoked recession fears.

Kevin Guo, director of HashKey Research, emphasised that Trump's tariff announcements were the primary cause of the crypto sell-off, completely reversing the gains from the previous day's crypto strategic reserve news.

The broader crypto market also suffered, with altcoins like Solana (CRYPTO:SOL) and Ripple (CRYPTO:XRP) experiencing steep declines.

The global crypto market cap fell by over 10%, reflecting the widespread impact of these macroeconomic factors.

As the crypto market continues to navigate these challenges, investors are closely watching for signs of recovery or further declines.

The upcoming White House Crypto Summit on March 7 may provide additional clarity on regulatory policies and their potential impact on the market.

At the time of reporting, the Bitcoin (BTC) price was $83,591.55, and the Ethereum (ETH) price was $2,082.32.