Trump tariffs hit crypto rally: digital tokens tank up to 28%

Trump's pro-crypto stance catapulted cryptos to new highs. Bitcoin led the gains, with the historic $100,000 mark breached days before Trump's inauguration. However, the rally was not immune to Trump's trade tactics. The imposition of tariffs on Canada, Mexico, and China has rattled global markets, including crypto tokens. This comes as investors increasingly ditch riskier assets. Advertisment Top tokens, including Bitcoin, Ethereum, Dogecoin, Solana, and XRP, crashed over 30 per cent on Monday. Concerns over growth, earnings and broader macroeconomic consequences have pushed investors to the edge. Bitcoin rally stalls Bitcoin, the OG cryptocurrency, has suffered the steepest decline after hitting an all-time high of $109,114.88 about a couple of weeks ago. The currency's total market capitalisation has tanked over 11 per cent, testing lows of $91,000 in the last 24 years. Still, Bitcoin was the only token posting a single digital fall. AdvertismentOther tokens, including Ethereum, plunged over 20 per cent. Even Elon Musk-backed Dogecoin couldn't survive the crypto freefall, with the currency falling over 25 per cent and wiping out one-fourth of its respective value. The total liquidation in the crypto market hit nearly $2 billion as investors lost confidence in Trump's stance to make crypto a mainstream currency. Investors are also worried about crypto's future. Reactions from other economies, particularly the UK and BRICS nations, could further shape market volatility. Analysts are betting on Bitcoin hitting $89,000 before it recovers.