Bitcoin Falls 10% Following Trump’s Global Tariff Announcement: What This Means for Investors

The cryptocurrency community once rallied behind President Trump, celebrating his election as a landmark moment for Bitcoin. Dubbed “the first Bitcoin president,” Trump promised to establish the U.S. as the “crypto capital of the planet.” However, recent turmoil has shifted this narrative. Following Trump’s announcement of global tariffs, Bitcoin has seen a dramatic fall, plummeting over 10% to below $78,000 after hitting a record high of nearly $110,000 in January—just as he took office.

This steep decline starkly illustrates that despite Bitcoin’s positioning as a long-term store of value, it remains susceptible to broader market fluctuations, particularly when investors perceive risk. As many now see Bitcoin akin to tech stocks, its value reacts sharply to market uncertainties.

Though Trump has made strides to support the crypto industry—appointing favorable regulators and initiating the creation of a government Bitcoin stockpile—his tariffs have spawned discontent among investors. Prominent venture investor Haseeb Qureshi noted that the crypto market thrives on optimism and risk appetite, both of which are waning amid Trump’s inaction as concerns grow.

As the situation evolves, the relationship between cryptocurrency and political maneuvering will remain critical to watch. How the administration addresses these issues could shape the future of crypto investment in the U.S. and beyond.