Fresh Trump Tariffs Shake Markets as XRP, DOGE Slide 10%

Crypto Market Sheds $2.7 Trillion in Losses as XRP, DOGE Lead Sell-Off Amid Trump’s Tariff Move

The cryptocurrency market took a major hit on Friday, erasing all gains made since Donald Trump’s election victory in early November, as new U.S. tariffs on China triggered a broader risk-off sentiment across global markets.

Market Downturn: XRP, DOGE, and Bitcoin Slide

XRP and Dogecoin (DOGE) led the decline among major digital assets, each plunging over 10% following the confirmation of fresh U.S. tariffs on Chinese imports. Bitcoin (BTC) slipped 7% to trade near $79,000, marking its lowest level since November and extending its drop to nearly 30% from its January peak of over $108,000. Other top cryptocurrencies, including Ether (ETH), Cardano (ADA), and Binance Coin (BNB), also suffered steep losses of at least 9%.

As a result, the overall crypto market capitalization fell by 8% to $2.7 trillion, wiping out all progress made since Trump’s election. The CoinDesk 20 Index (CD20), a broader gauge of market performance, also dropped nearly 9%.

Stock Market Weakness Weighs on Crypto

Despite Nvidia posting strong earnings earlier in the week, investor sentiment turned bearish as global equities stumbled. Overvaluation concerns, combined with renewed fears of an escalating trade war, led to a broad market correction. Bitcoin, which has maintained a strong correlation with the S&P 500, was caught in the downward momentum.

“Crypto assets, especially altcoins, have struggled this year due to liquidity drying up after speculative memecoin rallies, while Bitcoin has also faced pressure from record ETF outflows,” said Augustine Fan, head of insights at SignalPlus, in a Telegram message to CoinDesk.

China’s Economic Outlook and Crypto’s Next Moves

The tariff-driven sell-off coincided with a sharp decline in Chinese stocks, as investors feared additional pressure on the world’s second-largest economy. With China already battling deflation and a weakening property market, Trump’s latest tariff escalation is seen as an added strain.

The developments come just days before China’s National People’s Congress meeting, where officials are expected to outline economic growth strategies. Any announcement of stimulus or economic support could serve as a key catalyst for Bitcoin and broader crypto markets.

Bearish Sentiment Prevails in Bitcoin Markets

Until a clearer picture emerges, bearish sentiment continues to dominate the Bitcoin market.

“Traders who were betting on a rally are starting to unwind their positions, with implied volatility declining as call options are being replaced by put options,” Fan explained.

Meanwhile, concerns over MicroStrategy’s (MSTR) recent 10% stock decline have added another layer of uncertainty. Given the firm’s Bitcoin-backed investment strategy, any further downside could exacerbate bearish sentiment in the broader crypto market.