The post Why Is the Crypto Market Down Today and How Traders are Playing BTC, XRP, SOL Dip appeared on BitcoinEthereumNews.com.

The kickstart of heavy tariffs under the Trump administration has ushered in a new chapter of uncertainty and opportunity for the crypto market, one that tends to ebb and flow with changes in the global economy. Tariffs, by design, increase the cost of imported goods, often leading to higher inflation, shifts in supply chains, and fluctuations in currency valuations. A stronger U.S. dollar, driven by tariff-induced trade imbalances, might initially pressure crypto prices downward as investors flock to traditional safe havens. However, prolonged economic uncertainty could fuel bitcoin’s appeal as a store of value, especially if central banks respond with loose monetary policies. Here’s how crypto traders and market watchers are approaching the coming months — largely expecting muted price action in the near term but bullish in the medium to long term. Rick Maeda, Research Analyst at Presto Research Trump’s tariffs, jumping to 34% on China and 25% on cars from the 10% baseline levy, unnerved global markets and crypto was no exception. Bitcoin sold-off into the $82k level while Ethereum got hit harder, dipping below 1,800. Options flow-wise, there was put buying across tenors as traders hedged against further downside, but implied volatility term structures held relatively steady. Crypto continues to be haunted by Trump’s trade policies as it faced a similar shock earlier this year when tariffs on Mexico and Canada – 25% each – were floated. Lacking a strong intrinsic narrative, the asset class remains firmly tethered to macro forces, with its macro beta keeping it closely bound to trade war developments. Structurally, a prolonged trade war could continue to batter crypto as it continues to identify as a risk asset rather than the digital gold it once was. Enmanuel Cardozo, Market Analyst at Brickken “Trump’s tariffs that rolled out yesterday on April 2, 2025, for…

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Filed under: News - @ April 4, 2025 4:23 am