Bitcoin experienced a sharp decline late Wednesday after President Donald Trump unveiled new tariff policies that rattled financial markets. The leading cryptocurrency, which had been trading near $88,000 earlier in the day, dropped to just above $83,000 following the announcement.
Trump formally introduced reciprocal tariffs targeting a broad range of countries, including major U.S. trading partners. The market initially showed resilience, with stocks climbing during regular trading hours. However, investor sentiment shifted dramatically after hours, leading to a sell-off in risk assets.
The tech-heavy Nasdaq 100 index, tracked by the “QQQ” ETF, saw a significant retreat of approximately 4%. This downward movement extended to crypto-related equities, which also suffered notable losses in after-hours trading.
Among the hardest hit was MicroStrategy (MSTR), a company well known for its substantial Bitcoin holdings, which saw its shares decline by about 7%. Meanwhile, Coinbase Global (COIN), one of the largest cryptocurrency exchanges, dropped 6%, and Robinhood (HOOD) tumbled roughly 9%.
The market reaction underscores the ongoing sensitivity of both traditional and digital asset markets to macroeconomic developments. As investors digest the implications of the new trade policies, volatility may persist across equities and cryptocurrencies alike.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist