Risk-Off Sentiment Dominates Crypto Markets Following President Trump’s Tariffs Decision
Crypto markets are grappling with significant volatility as risk-off sentiment prevails in response to President Donald Trump’s latest move to impose tariffs. Simon Peters, a crypto analyst at eToro, noted today that the markets are reacting negatively to Trump’s decision over the weekend to implement a 25% tariff on imports from Mexico and Canada, alongside a 10% levy on Chinese goods.
Since the weekend, the total crypto market capitalization has seen a sharp decline of $650 billion at its lowest point. Bitcoin, however, has shown some resilience, down 7% and currently trading at $95,300 after testing a support level of $92,000. In contrast, altcoins have suffered more substantial losses, with Ethereum dropping 35%, Solana 25%, and XRP down 40% since Saturday.
“While the crypto market is experiencing turbulence, long-term investors may view this as a strategic moment to buy the dip,” said Simon Peters. “Although altcoins have been hit hard, the fundamentals of the crypto space remain robust, and this dip could present an attractive entry point for savvy investors.”
In addition to the tariffs, markets will be closely watching Friday’s non-farm payroll data and the US unemployment rate. Last week, Federal Reserve Chairman Jerome Powell reiterated that the central bank is in no hurry to adjust its policy stance, particularly as the US economy remains strong.
This strength in the labour market could delay any potential rate cuts until later in the year or even into 2026.
However, with President Trump now back in office and pushing for immediate rate cuts, the direction of US interest rates remains uncertain. “It will be fascinating to see which side concedes first – the Federal Reserve or the Trump administration – and how risk assets like crypto will respond to these shifting dynamics,” added Peters.
