Bitcoin Crashes 7% as $500B Wiped from Crypto Market Amid Trump Tariff Shock

Bitcoin plunged to a near one-month low early Monday as market turmoil deepened, fueled by escalating trade tensions after U.S. President Donald Trump imposed steep tariffs, triggering fears of a global trade war. The move decimated investor risk appetite, dragging both equity and crypto markets sharply lower.

Bitcoin fell over 7% to $77,171.1 before rebounding slightly to $78,290.7 by late evening, marking one of its steepest declines in recent weeks. The broader crypto market mirrored this slump, shedding nearly $500 billion in value since last week as traders fled risk assets.

Concerns over a potential “Black Monday” scenario loomed, with memories of the 1987 market crash resurfacing. Global stocks have already lost over $4 trillion in value since last Wednesday, and crypto markets are following suit amid rising economic uncertainty.

Traders reacted cautiously to Trump’s aggressive tariff policy, which prompted swift backlash and threats of retaliation from affected countries. Safe-haven assets like gold and the Japanese yen gained traction, while speculative assets, including cryptocurrencies, took a hard hit.

Adding to Bitcoin’s losses was a significant transaction of nearly $160 million worth of BTC to crypto exchange Kraken, sparking speculation of a large-scale sell-off by a whale.

Altcoins also suffered steep losses. Ethereum dropped nearly 13% to $1,577.30, its lowest level since October 2023. XRP plunged 11.4% to $1.9033, while Solana, Cardano, and Polygon declined by over 10% each. Meme tokens weren’t spared either, with Dogecoin down 13% and $TRUMP falling 15% to a record low of $7.87.

As risk aversion dominates global markets, any further decline in equities is expected to exert more pressure on cryptocurrencies in the coming days.