Trump’s Tariffs Shake Up Crypto and Financial Markets: Insights from Markelitics

Trump’s latest move involves imposing a 25% tariff on imports from Canada and Mexico, alongside a 10% tariff on goods imported from China. While these tariffs are not directly aimed at the cryptocurrency sector, they have nonetheless intensified market instability, triggering significant declines across both crypto and crypto-related stocks.

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Crypto Market Feels the Heat from Tariff Turmoil

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Over the past 24 hours, the cryptocurrency market has experienced a sharp decline of more than 7%. Bitcoin, the leading cryptocurrency, has fallen below $95,000, marking a drop of over 5%. Ether, the second-largest crypto by market capitalization, has been hit even harder, plunging over 17% to just above $2,500.

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Other major cryptocurrencies have also suffered steep losses:

Solana: down 16%

Dogecoin: down 23%

Cardano: down 24%

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Markelitics highlights that this widespread sell-off reflects growing investor anxiety amid broader economic uncertainties spurred by Trump's aggressive trade policies.

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Crypto Stocks Hit by Market Instability

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The ripple effects extend beyond cryptocurrencies to crypto-related stocks. Key players in the industry have seen their stock values tumble:

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Coinbase (COIN): down 2.5% on Monday, reflecting the broader market’s nervousness.

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Tesla (TSLA): fell 4.7%; the company, led by Elon Musk, holds over 11,500 Bitcoins, making it vulnerable to fluctuations in crypto prices.

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MicroStrategy (MSTR): experienced a 1% dip. The company boasts the largest Bitcoin holdings among publicly traded firms, with 444,462 BTC.

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MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY): saw declines of 3.7% and 1.4%, respectively, reflecting the strain on crypto mining and financial services.

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While cryptocurrencies themselves aren’t directly targeted by Trump’s tariffs, the broader economic instability they’ve triggered has clearly shaken investor confidence across multiple sectors.

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Two Key Trends Shaping the Crypto Market, According to Markelitics

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Crypto’s Growing Sensitivity to Trump’s Policies

Since Donald Trump declared himself a “crypto candidate” during his 2024 presidential campaign, the cryptocurrency community has been closely watching his every move. Now that he’s back in office, the market’s sensitivity to his decisions has intensified.

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When Trump announced new tariffs on Canada, Mexico, and China, the crypto market reacted sharply—even though these tariffs have no direct impact on digital currencies. This reaction, Markelitics notes, underscores how even unrelated political developments can trigger volatility in the crypto space.

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Crypto’s Increasing Correlation with Traditional Markets

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The cryptocurrency market is becoming more mainstream, and its ties to the broader financial ecosystem are strengthening. Markelitics observes that whenever there’s a sell-off in tech or AI stocks, the crypto market tends to follow suit. This trend was evident when a DeepSeek-induced sell-off in Nvidia rippled through the entire crypto sector.

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