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Bitcoin took a sharp hit on Monday, falling 6% to $78,000 as global markets reeled from a surprise policy jolt by former U.S. President Donald Trump. The drop came in the wake of Trump’s announcement hinting at sweeping new tariffs on Chinese imports, should he return to the White House in 2025 — a move that immediately shook investor confidence and triggered a broad sell-off across risk assets.
The proposed tariff escalation, which Trump framed as a way to “rebuild American industry,” sparked fears of renewed trade tensions between the world’s two largest economies. Equities slipped, bond yields jumped, and crypto — often seen as a risk-on asset — wasn’t spared from the carnage.
Bitcoin’s decline dragged the broader crypto market down, with Ethereum losing over 4% and altcoins experiencing similar drops. Analysts say the market’s knee-jerk reaction reflects concerns that another trade war could hit global growth and inject fresh uncertainty into already fragile financial conditions.
“Crypto investors don’t like uncertainty, especially when it’s geopolitical and policy-driven,” said one strategist. “This tariff news hit just as markets were looking for stability — and instead they got volatility.”
While Bitcoin remains up significantly year-to-date, the sharp pullback reminded traders that macroeconomic forces still dominate price action, even in decentralized markets. Some long-term holders are treating the dip as a buying opportunity, while others are waiting for signs of stabilization before jumping back in.
As election season heats up and policy rhetoric ramps further, traders may need to brace for more political curveballs — with Bitcoin caught in the crossfire.
