Trump’s Tariff Threat Sparks Crypto Market Decline
On October 10, President Donald Trump announced a important tariff hike on Chinese imports.This move came after China restricted exports of rare-earth materials crucial for tech and defense. the news revived trade-war fears, causing markets to react negatively.
Trump’s statement echoed his April 2 “Liberation Day” tariffs, which previously unsettled markets. His latest remarks hinted at a potential U.S.-China trade war, leading to global market volatility. bitcoin (BTC) dropped below $117,000, down from its recent highs.
Ethereum (ETH) also took a hit, falling below $4,000. Solana (SOL) is nearing the $200 mark.Crypto-related stocks, including Coinbase, Robinhood, and MicroStrategy, declined by 5-10%. The U.S. equity indexes followed suit, with the S&P 500 down 2.71% and the Dow Jones losing nearly 900 points. The Nasdaq Composite suffered the most, dropping 3.56%.
Gold prices rose over 1%, showing it as a safer investment compared to crypto. The U.S. government shutdown, now at 10 days, has slowed regulatory actions. The SEC, with limited staff, has delayed crypto-related filings until funding resumes.
Friday’s market reaction was a broad risk-off shift. Trade tensions, political uncertainty, and limited regulatory activity contributed to declines in both conventional and digital markets.
