Markets Took a Hit as Trump Threatened Tougher Tariffs on Canada and the EU

Cryptos like Dogecoin (DOGE), Ether (ETH), and XRP (XRP) dropped more than 5% in early Asian hours as traders locked in profits from earlier rallies.

President Donald Trump's threat of tougher tariffs on Canada and the EU, and his warning that their potential collaboration could hurt the U.S. economy, pushed markets lower on Thursday. Cryptos like Dogecoin (DOGE), Ether (ETH), and XRP (XRP) dropped more than 5% in early Asian hours as traders booked profits from earlier rallies.

What Happened

President Trump signed an order instituting a 25% tariff on auto imports and threatened further action if the EU and Canada retaliate, escalating trade tensions.

The focus now falls on the U.S. personal consumption expenditure (PCE) report, which is set to drop later today and could provide further market movement.

Major crypto tokens saw an average decline of 4.5%, with DOGE leading the way down by 7%. The only exception was Toncoin (TON), which saw a rise of 5% in the last 24 hours. Bitcoin was trading at $85,925, showing a decrease of 1.8% over the last 24 hours, while Ethereum slid by 5.1% to $1,923. The total cryptocurrency market capitalization dropped by 2.35% to reach $2.79 trillion.

In a display of strength, gold reached new peaks, surging past the $3,109 mark during the Asian morning hours. This continues the strong rally for the metal, which began in March.

Top Gainer (24 Hour)

The crypto market capitalization fell by 2.35% over the last 24 hours to $2.79 trillion. Total volume in DeFi dropped by 16.36% to $10.96 billion. The total volume across all stablecoins decreased by 26.33% to $20.67 billion.

Later Today

The U.S. PCE Index is expected to come in at 3.9%, according to economists polled by Dow Jones. Economists also project a 0.3% decline in March.

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What's Next

Over $12.2 billion in Bitcoin options are set to expire, and market mood could be affected by the upcoming release of the U.S. personal consumption expenditure (PCE) data.

With ongoing trade tensions and shifts in global monetary policies, Bitcoin could face reduced demand as a safe-haven asset, adding to concerns in an already volatile market.

QCP Capital traders noted that Bitcoin's price is moving in a sideways manner, and there is limited optimism in the market at present, evidenced by the decreasing interest in trading activity.

They anticipate that any short-term price increases will be minimal, especially considering the upcoming release of the PCE Index data, which could exert pressure on the cryptocurrency market.

Moreover, traders are closely following developments in the trade dispute between the U.S. and other nations, as it could lead to heightened inflation and macroeconomic instability.

As the U.S. economy faces more uncertainty from trade tensions and rising inflation, investors might reduce their holdings of Bitcoin and turn to more stable assets to hedge against inflation.

This shift could impact Bitcoin's price and its standing as a go-to investment during times of economic turbulence.