Why Did Crypto Crash? It Might Be Because of TRUMP

Why Did Crypto Crash? Trump’s Tariff Threat Sends Bitcoin Tumbling

The crypto market took a sharp downturn after President Donald Trump announced his plan to impose a “straight 50% tariff on the European Union” starting next month. This bold trade threat sent shockwaves across global markets—especially risk-on assets like Bitcoin and altcoins.

Total market cap in USD - TradingView

The total crypto market cap dropped 3% in the past 24 hours, with Bitcoin and major altcoins posting red candles. But why did crypto crash so suddenly, and is this the start of a deeper correction?

Bitcoin Drops After Trump’s EU Tariff Shock

In an unexpected turn, President Trump’s announcement on stalled trade negotiations with the EU came with a bold proposal—50% tariffs starting next month. The crypto community reacted instantly, interpreting the move as a potential catalyst for macroeconomic uncertainty and market volatility.

Bitcoin (BTC), often dubbed digital gold during uncertain times, failed to act as a safe haven this time. The asset slipped 2.27% over the last 24 hours, now trading at $108,247.81, despite still being up 4.71% over the past week.

Altcoin Market Follows Bitcoin Lower

Altcoins mirrored Bitcoin’s decline, with Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) all dipping on the day:

• Ethereum (ETH): Down 5.21%, now trading at $2,550.32, despite showing a 2.75% gain this week.
• XRP: Fell 4.57% to $2.33, with some resilience showing over the week at +1.24%.
• Solana (SOL): Dropped 3.57% to $175.19, with a 4.44% gain over 7 days.
• Cardano (ADA): Took a larger hit at 7.50% down, trading at $0.7599, and showing flat weekly performance at +0.22%.

Even Dogecoin (DOGE), which has recently been riding a memecoin rally, fell sharply after gaining traction earlier this week.

Political Tensions Meet Meme Coin Hype

Adding fuel to the fire, President Trump also hosted a private dinner for top holders of his own memecoin, $TRUMP, raising eyebrows and ethics questions from some Democrats. The event, while symbolic, stirred confusion in already jittery markets, as investors questioned the merging of political influence and crypto promotion.

Market Outlook: Is This Just a Pullback?

Despite the crash, the crypto market remains in a broader bullish structure. Bitcoin is still trading above key support levels, and institutional interest remains strong. However, short-term uncertainty due to geopolitical risks—especially trade wars and regulatory speculation—could continue to weigh on prices.

The coming days will be critical. If Bitcoin can hold above the $105K support zone and Ethereum defends the $2.5K level, traders may regain confidence. Otherwise, we could see further downside before the market stabilizes.