A stylized digital artwork showing a sharp red downward arrow cutting through a candlestick chart, with the word "TARIFFS" boldly displayed above and a glowing Bitcoin coin to the side, representing the market crash impact of U.S. trade policies.
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Why Is Crypto Crashing? One Word: Tariffs

If you’ve been watching your crypto portfolio slide, you’re not alone — and no, this isn’t one of those mysterious corrections. The cause is loud and clear: Trump’s global tariffs just shook the markets.

Trump’s “Tariff Tsunami” Hits Hard

Out of nowhere, Trump dropped a major economic bomb — a 10% blanket tariff on all imports, plus steep hikes targeting Chinese goods, pushing some tariffs over 50%.

The result? Markets freaked out worldwide:

  • Nikkei 225: down nearly 3%
  • London, Paris, Frankfurt: all down over 2%
  • S&P 500: opened down 3.4%
  • Nasdaq 100: sank 4.1%

And crypto? It didn’t stand a chance.

Bitcoin Holds (Sort Of), Altcoins Get Slammed

Crypto’s 24/7 nature meant it was first in line to feel the pain.

  • Bitcoin dropped ~7%, from $88.4K to $82.1K
  • ETH: down 11%
  • XRP: down 13%
  • SOL: crushed, down 17.5%

BTC didn’t fall as hard, but it’s still trading in sync with tech stocks — which are getting wrecked.

What Does This Mean for Bitcoin Long-Term?

Short-term? Not pretty. But long-term, there’s an interesting twist.

The U.S. Dollar Index just hit a 5-month low, and the dollar dropped against the British pound. According to CoinGecko:

“When the dollar weakens, Bitcoin tends to rally. It’s like digital gold during fiat chaos.”

So while fear rules right now, this could actually set up a bullish scenario down the road.

Markets Are Panicking — Rate Cuts Might Be Coming

  • Polymarket now shows 53% odds of a 2025 recession
  • CME FedWatch says chances of a May rate cut jumped from 10% to 27% overnight

If the Fed steps in, we could see liquidity rush back into crypto. But until then? Expect more chop.

Will BTC Hold $80K? That’s the Battle Zone

All eyes are on $80,000. Lose it, and things could slide further. Hold it, and bulls might regain control.

Bitcoin believers like Saylor and Samson Mow aren’t blinking—they’re still focused on the big picture. But with Extreme Fear in the air and tech stocks tumbling, it’s clear: this quarter is going to be bumpy.

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