Trump’s Tariff Threats Rattle Markets, Dragging Dogecoin and XRP Down 7% as Bitcoin Expiry Nears

Crypto markets turned sharply lower Friday as traders weighed the impact of renewed trade war threats and awaited key U.S. inflation data. President Donald Trump’s comments warning of potential new tariffs on Canada and the EU rattled global sentiment, pushing risk assets—including digital currencies—into the red.

Dogecoin (DOGE), Ethereum (ETH), and XRP each fell over 5% during early Asian trading, reversing gains from earlier in the week. DOGE was the hardest hit among the CoinDesk 20 Index (CD20) constituents, dropping 7%, while the broader index declined by 4.5%. Toncoin (TON) defied the downturn, gaining 5% and standing alone in positive territory among the top 20 tokens by market cap.

The risk-off tone extended to traditional assets. Gold broke above $3,109 in early trading, continuing its March rally as investors sought safety. Meanwhile, the MSCI World Index posted its longest losing streak in a month, and Asian equities were set for their steepest daily drop since late February, according to Bloomberg.

Adding to market pressure, over $12.2 billion in Bitcoin options are set to expire later today, with the max pain point—where the most options expire worthless—at $85,000. Traders say this could inject more volatility into an already fragile market.

“Bitcoin spot is moving sideways, and open interest continues to decline,” said QCP Capital in a market update. “This reflects a lack of conviction, especially with PCE inflation data due. We expect limited upside in the short term as markets wait for more clarity on both monetary policy and trade developments.”

The Personal Consumption Expenditures (PCE) index, due Friday, is the Federal Reserve’s preferred inflation measure. High readings may pressure the Fed to resume rate hikes, which would typically weigh on risk assets like bitcoin. A lower print could ease those concerns, potentially opening the door to more liquidity and stronger crypto performance.

On the geopolitical front, Canada responded strongly to Trump’s tariff threat. Prime Minister Mark Carney said the U.S. was “no longer a reliable partner,” and signaled Canada would deepen trade ties with other allies.

“Markets remain hypersensitive to both inflation expectations and global policy shifts,” said Innokenty Isers, CEO of Paybis. “Bitcoin’s high volatility may make it less appealing as an inflation hedge in this environment. If the trade war intensifies, we may see risk capital shift away from BTC toward more traditional safe havens.”