US President Donald Trump has followed through on a key
campaign promise. On Wednesday (yesterday), Trump officially ordered reciprocal
tariffs to be imposed globally starting from 5 April. This decision is expected
to create cautious sentiment, with concerns over a potential trade war
escalation.
The cryptocurrency market saw increased volatility after the
announcement. XRP dropped 5% on Wednesday following Trump’s tariff declaration.
US Tariffs Prompt Market Uncertainty
“I believe the lack of a clear reaction from crypto
markets reflects a sense of collective shock among participants. Many including
myself doubt this is a final decision. There’s a widespread expectation that
the situation could pivot quickly. Traditional economists are rightly pointing
out that these aggressive tariffs increase global uncertainty and tilt the
world economy toward potential recession,” said Kirill Kretov, Automation
Expert at CoinPanel.
The XRPUSD H1 chart shows a significant breakout at a
support level, which could act as resistance, potentially driving the price
down. However, some buyers may wait for further decline before entering the
market.
“Crypto prices are particularly vulnerable to
manipulation. Many investors are likely choosing to stay on the sidelines until
there’s more clarity. Personally, I see significant potential for profit during
this period of volatility, but it’s a space where only the nimblest players
will thrive,” Kretov added.
Read more at FinanceMagnates.com: Bitcoin,
Altcoins Fell Under President Trump’s Tariff Wrath: Can Cryptos Recover?
🚨We just saw one of the largest tariffs in US history😱-185 countries will suffer tariff war-S&P 500 futures erased -$2 TRILLION of market cap in under 15 minutes.-The total crypto market cap is down -3.3% from $2.88T to $2.78T todayTrump announced , “and now we are… pic.twitter.com/iyaHz7cXEy
— Trader Naman (@namantrader) April 3, 2025
Global Markets Decline amid US Tariffs
Meanwhile, Global
financial markets have faced significant turbulence following Trump’s
announcement of tariffs. Stock indices across Europe and the US saw widespread
declines, including major indices like the Euro Stoxx 50, S&P 500, and
Nasdaq 100.
The tariffs, ranging from 10% to 50%, have raised concerns
about a potential trade war and disruptions to global supply chains. European
markets, including the DAX and Euro Stoxx 50, opened lower, with Germany’s DAX
dropping 1.3%.
US markets mirrored the pessimism, with futures on the
S&P 500 and Nasdaq 100 falling sharply. Analysts cite trade war fears,
inflation, and economic growth concerns as key factors behind the sell-off,
with particular vulnerabilities in sectors like automotive and retail. Gold
futures reached record highs, reflecting a flight to safety as investors brace
for further market volatility.
This article was written by Tareq Sikder at www.financemagnates.com.
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