President Donald Trump began a new trade war with Canada, Mexico and potentially China, which had a major training effect on the wider financial landscape, including the cryptocurrency market. Trump’s latest decision is to impose a 25% rate on imports from Canada and Mexico, while Chinese imports will be taxed at 10%.
Although these prices should not directly affect the cryptocurrency market, they have always contributed to broader volatility on the market. In the past 24 hours, the entire cryptocurrency market experienced a sharp drop of more than 7%. Bitcoin, the flagship cryptocurrency, fell below $ 95,000, reflecting a drop of more than 5%. Ether, the second largest cryptocurrency by market capitalization, was even more difficult, undergoing a loss of more than 17% during the same period, oscillating just more than $ 2,500. Other major cryptocurrencies such as Solana, Dogecoin and Cardano have experienced reductions of 16%, 23% and 24% in the last 24 hours, respectively.
The slowdown has also extended to crypto stocks. Coinbase (corner), the largest cryptocurrency exchange in the United States, saw its stock drop by 2.5% on Monday. Tesla (TSLA), the electric car company led by Elon Musk, which holds more than 11,500 bitcoins, saw a drop in the value of 4.7%. Microstrategy (MSTR), the intelligence company with the biggest Bitcoin holders among the listed companies – 444,462 BTC – also experienced a 1% drop in the price of its shares. Other companies linked to cryptocurrency, including mining companies such as Mara Holdings (Mara) and Galaxy Digital Holdings (GLXY), saw their stocks drop by 3.7% and 1.4%, respectively.
Although cryptocurrencies were not directly affected by prices, economic uncertainty and wider uncertainty have clearly shaken the confidence of investors, leading to a large sale on crypto and traditional markets. This highlights two trends concerning the expansion of the cryptocurrency market:
Since Donald Trump declared himself “crypto candidate” in 2024 during his electoral campaign, the cryptocurrency industry closely monitored each of his movements, paying particular attention to his actions and declarations. Now that he has taken office, the cryptography market has become very sensitive to its decisions.
This has become clear when Trump announced new prices on Canada, Mexico and China – an announcement that, despite no direct impact on the crypto market, has always sent cryptocurrencies to a sharp decline. The reaction of the market underlines how even the unrelated political movements can trigger significant volatility in the space of cryptocurrencies.
