An advertisement of Bitcoin, one of the cryptocurrencies, is displayed on a building in Hong Kong, on November 18, 2021. (AP Photo)
Cryptocurrency prices
fell after President Donald Trump announced new tariffs on goods from Canada, Mexico, and China. Bitcoin dropped from around $105,000 on Saturday to about $92,000 on Sunday night. However, it later recovered to over $100,000 on Monday after Trump paused tariffs on Mexican and Canadian goods.
Other Cryptocurrencies hit hard, including Trump’s meme coin
While bitcoin showed some recovery, other cryptocurrencies saw larger losses.
Ethereum
, dogecoin, and other digital assets declined sharply. Trump’s own
meme coin
traded at around $19 on Monday, about 75 per cent below its peak when he launched it before his second inauguration.
Also Read: Donald Trump Tariff News
“These are riskier cryptos than bitcoin,” Garrick Hileman, a cryptocurrency analyst was quoted as saying by news agency Associated. “But it’s a little surprising how big the gap is.”
Financial markets also saw major shifts before the tariffs were set to take effect. Trump warned that Americans might feel “some pain” from the tariffs but said the move was necessary. He also suggested that tariffs on the European Union and possibly the United Kingdom could follow.
Bitcoin was created in 2009 as digital cash outside government control. Over the years, it has become more mainstream, with its price movements now closely tied to tech stocks.
Meme coins, a more volatile part of the crypto market, have also seen sharp declines. First Lady Melania Trump’s meme coin, launched before Trump took office, is down nearly 90% from its highest value.
Trump’s crypto policies
Trump, who was once skeptical of cryptocurrencies, has now embraced digital assets. He has promised to make the US a leader in crypto and has appointed officials supportive of the industry.
Despite recent declines, cryptocurrencies have gained value since Trump’s election. Bitcoin remains close to its record high of $109,000.
