Bitcoin and other major cryptocurrencies were down as President Donald Trump put tariffs on the US trading partners

Bitcoin dropped by 7% to approximately $82,000 and then rebounded. Other altcoins such as Ether, XRP, Solana also fell in value.

President Donald Trump's announcement of tariffs on US trading partners has led to a decline in risk assets, including major cryptocurrencies. Bitcoin fell by 7% to approximately $82,000 before rebounding, while other altcoins such as Ether, XRP, and Solana also saw a decrease in value.

Trump stated that he will be putting a 10% tariff on all exporters to the US, with additional duties targeting around 60 countries. China faces a 34% tariff, the European Union 20%, India 26%, and Japan 24%.

While cryptocurrencies initially absorbed the news, they faltered as traders in Asia began their day. According to John Wu, the president of Ava Labs, cryptocurrencies are generally viewed as risk-on assets and are not well-suited to periods of risk-off, which are indicated by high-interest rates or the introduction of trade tariffs. The S&P 500 ETF also fell by 2.5% after the US market closed.

"The market wasn't caused by tariffs but the return of policy volatility," said Ben Kurland, the CEO of DYOR. Traders prefer no surprises and this move implies plenty of uncertainty that will continue to be clocked by traders, according to Kurland.

Gold, however, rose to an all-time high of $3,160 per ounce due to its safe-haven status. Bitcoin enthusiasts have often touted it as a similar safe haven, but the fluctuations of the past few months have led some to question this narrative.

"The future direction of Bitcoin will likely depend heavily on geopolitical activity, shifts in policy, and the evolving perception among traders as to whether it is viewed as a safe-haven instrument or a risk-on asset," said Rachael Lucas, the BTC Markets analyst.