Altcoins Plummet Due to Trump's Tariff Bomb

Cryptocurrency A to Z

US Inflation Pressure Rises

Rate Cuts Uncertain

Ethereum, Solana Drop

Some Say "If Dollar Trust Falls

Bitcoin Gains"

Following US President Donald Trump's announcement of reciprocal tariffs, the cryptocurrency market continues to weaken. Inflation concerns have been triggered by aggressive tariffs against major trading partners.

According to global cryptocurrency exchange Coinbase, Bitcoin traded at $82,825, down 0.76% from the previous day, at around 2 PM on the 4th, right after Trump's reciprocal tariff announcement. Bitcoin fell to as low as $81,000 during the day. In Korea, it traded at around 121 million won.

It's not just Bitcoin. Major altcoins such as Ethereum (-2.36%), XRP (-0.73%), and Solana (-4.71%) also showed weakness at the same time.

In a previous press conference, President Trump stated, "We will impose a basic tariff of 10% on all goods imported by the US and apply reciprocal tariffs to over 60 trading countries." High reciprocal tariffs were set, including 34% on China, a major trading partner, and others such as △European Union (EU) 20% △Japan 24% △South Korea 25% △Taiwan 32% △Vietnam 46%.

Analysts suggest that the imposition of tariffs has heightened inflation (price increase) pressure in the US, making rate cut prospects uncertain, which has worsened investor sentiment. John Wu, CEO of blockchain company Ava Labs, said, "Cryptocurrencies, as risky assets, have shown poor performance when interest rates remain high or when there is uncertainty like the introduction of trade tariffs." Zahir Ebtikar, founder of cryptocurrency hedge fund Split Capital, also explained, "During periods of growth slowdown, traditional risky assets tend to decline, and cryptocurrencies show a similar correlation," adding, "While gold has reached an all-time high, cryptocurrencies have become more linked with the overall risky asset market."

On the other hand, some believe that the tariff could lead to a decline in US and dollar trust, benefiting Bitcoin. Hong Sung-wook, a researcher at NH Investment & Securities, said, "A series of tariffs could undermine the credibility of US governance and reduce the dollar's share in trade," adding, "In this case, other value storage means like Bitcoin and gold will be in the spotlight."