Impact of Trump Tariffs on the Crypto Market

by Iluobe Igho

The President of the United States, Donald Trump, introduced tariffs on various countries in April 2025. Though the tariffs have been paused for 90 days due to an apparent backlash on the US economy, these tariffs have been a significant topic of discussion in the global economic landscape, particularly in relation to their potential impact on the cryptocurrency market.

Before and after the tariff regime eventually took off in April, its impact on the stock market and the crypto market has been visible. What exactly are Trump tariffs, and how do they affect the crypto market? 

What are Trump Tariffs?

Trump tariffs refer to the taxes imposed on imported goods from various countries, aimed at rebalancing global trade and boosting US manufacturing growth. 

The Trump administration has considered declaring a national economic emergency to implement a universal tariff program targeting allies and (perceived) adversaries alike. These tariffs could be introduced under the International Economic Emergency Powers Act (IEEPA), allowing swift implementation without extensive national security justification.

Though Trump has varied the planned tariffs in the last couple of days in response to kickbacks and imminent recession in the U.S, the introduction of Trump tariffs has significantly impacted the crypto market, triggering fear-driven sell-offs and increased volatility.

Impact on the Crypto Market

Highlighted below are some key effects:

• Market Volatility: Trump’s tariff announcements have led to sharp declines in major cryptocurrencies, including bitcoin (BTC) and XRP. The total crypto market cap sank by 5.3% to $2.7 trillion, accompanied by a spike in market fear.
• ETF Outflows: Significant outflows from BTC and Ethereum ETFs have been recorded, with $157.8 million and $3.6 million withdrawals, respectively. This trend may continue as investors become increasingly cautious due to the uncertainty surrounding Trump tariffs.
• Weakened Perception of Crypto as a Hedge: The tariffs have raised concerns about inflation and economic uncertainty, weakening the perception of cryptocurrencies like BTC as a reliable hedge against inflation. This shift in perception may impact the demand for cryptocurrencies and their prices.
• Institutional Accumulation: Despite short-term volatility, on-chain data highlights steady institutional accumulation, suggesting underlying strength in the market. This trend may continue as institutions seek to capitalize on the potential growth of cryptocurrencies.

Read also: Crypto Market Goes Red Amidst Trump’s Tariff Wars: Going bullish or staying bearish?

Price Predictions and Projections

Based on available data and trends, highlighted below are some price predictions and projections for some top cryptocurrencies:

• Bitcoin (BTC): BTC is expected to range between $60,000 and $70,000 in the short term, with a potential high of $80,000. Long-term projections by some analysts suggest a price of $100,000 by the end of 2025 and $150,000 by 2026.
• Ether (ETH): ETH is expected to range between $3,000 and $3,500 in the short term, with a potential high of $4,000. Some analysts have projected a price of $5,000 by the end of 2025 and $7,000 by 2026.
• XRP: XRP is expected to range between $1.99 and $2.08 in the short term, with a potential high of $2.08. Long-term projections, according to some analysts, suggest a price of $4.54 by 2026 and $65.63 by 2030.

The price predictions and projections above are not to be considered financial advice. In subsequent analyses under CAB’s Crypto Market section, each of these price predictions and projections will be comprehensively analyzed, considering all relevant data and factors.

Read also: XRP: Bearish indicators warn of potential 25% price decline in early 2025

Conclusion

The impact of Trump tariffs on the crypto market is multifaceted, influencing both short-term price movements and long-term investor sentiment. As the global economic landscape evolves, it’s essential to monitor these developments and their potential effects on cryptocurrency prices and adoption. By understanding the trends and projections, crypto asset investors and users can make informed decisions and navigate the complex world of cryptocurrencies.

Read also: 12 powerful crypto predictions for 2025 — 21Shares