Crypto market loses $130B amid Trump tariff uncertainty
The global cryptocurrency market shed over $130 billion in market capitalisation last week, driven by investor concerns over U.S. President Donald Trump’s impending tariff plans.
Major assets like Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Ripple (CRYPTO:XRP), and Solana (CRYPTO:SOL) fell 5.9%, 10.9%, 15%, and 10.1%, respectively, according to CoinGecko data.
The Kobeissi Letter report highlighted that Trump’s proposed tariffs, set to impact over $1.5 trillion in imports by April, have intensified economic uncertainty.
Analysts note the tariffs will compound existing trade tensions, with Trump’s team reportedly considering “broader and higher” measures, including a potential 20% across-the-board hike.
The Economic Policy Uncertainty (EPU) Index, which tracks U.S. economic policy uncertainty, reached 600—a level 80% higher than during the 2008 financial crisis.
Historical data suggests such spikes often precede market volatility, as seen during the COVID-19 pandemic and previous crises.
Market analysts attribute the crypto downturn to a “risk-off” sentiment, where investors favor safer assets like gold amid heightened uncertainty.
However, some experts suggest Bitcoin could regain traction as a hedge against inflation if traditional markets falter.
While short-term volatility persists, the EPU Index’s correlation with crypto volumes and Bitcoin’s perceived role as a “haven asset” may support medium-term demand.
“Risk-off sentiment dominates for now, but crypto’s inflation hedge narrative could resurface if markets deteriorate further,” one analyst noted.
