Bitcoin (BTC) price falls four per cent after Donald Trump imposes tariffs on trading partners worldwide

Bitcoin as well as other major cryptocurrencies fell after US President Donald Trump imposed tariffs on trading partners worldwide, which triggered a slump in risky assets.

US President Donald Trump’s tariffs on trading partners have sparked a slump in risky assets and saw Bitcoin and other major cryptocurrencies fall on Thursday.

Bitcoin, the largest cryptocurrency, fell as much as four per cent to about $82,000 by morning trade on Thursday, according to a Bloomberg report.

The cryptocurrency had been on a strong run, rising more than 200 per cent from its March lows amid a broader cryptocurrency rebound.

However, the cryptocurrency slid after Trump announced that he will be introducing tariffs of at least 10 per cent on all exporters to the US, in response to a World Trade Organisation ruling.

The tariffs will also see additional duties being slapped on around 60 nations which have the largest trade imbalances with the US.

China in particular, will be getting a 34 per cent levy, India will be seeing 26 per cent, Japan is seeing 24 per cent in tariffs, and the European Union will have a 20 per cent rate.

“As a risk-on asset, cryptocurrencies have generally traded poorly during periods of uncertainty following announcements such as steady high rates or the introduction of trade tariffs,” said John Wu, president at Ava Labs.

In sharp contrast, gold underscored its haven status, hitting a record-high of nearly $3,160 an ounce at the same time. Bullion was one of the few commodities which are exempted from the tariffs.

“Markets will likely dip in the short term, not because of the tariffs themselves, but because of what they represent: the return of policy-driven volatility,” said Ben Kurland, CEO of crypto research platform DYOR.

“Traders hate unpredictability, and this signals more is coming.”