Bitcoin’s price turned south on Wednesday evening after President Donald Trump announced the tariffs on goods from more than 180 countries. Within minutes, the leading coin slid from nearly $88 000 to just above $83 000, wiping billions from paper wealth in a single trading session.
Shares tied to digital coins fell in step. MicroStrategy, the firm that holds a mountain of Bitcoin on its balance sheet, dropped about 7% after hours. Coinbase lost 6% and Robinhood fell 9%.
The pain deepened when Asia opened… Bitcoin touched $77 077 and Ethereum reached $1 538, which is their weakest levels in months. Data firm Coinglass counted $745 million in bullish positions liquidated in just 24 hours, the heaviest clear‑out in nearly 6 weeks.
How Far Did Prices Fall?
By early Thursday, Bitcoin was trading near $78 938. Even so, it stood almost 6% lower over the day, while the total value of all digital coins sank to $2.5 trillion.
Ethereum was worse, still down more than 12% at $1 590. Trading volume across the market jumped nearly 140% to $101 billion as traders rushed to exit or hedge.
Risk aversion spilled into share markets as well. Growth‑oriented technology names recorded dramatic falls together with digital coins.
Earlier in the year Bitcoin peaked close to $110 000 during Trump’s inauguration celebrations; the latest quote leaves it more than a quarter below that, and this just shows how quickly fortunes can turn when macro headlines are not good news.
More from News
- Valutico Acquires AI Innovator Paraloq Analytics to Revolutionise Private Company Analysis
- How Do UK Consumers Spend Their Disposable Income?
- Spain Tops The List As Most Productive European Country
- Industry Leaders Share Their Thoughts On The Recent Interest Rate Hold
- Bank Of England Holds Interest Rates At 4.25%, What Does This Mean For UK?
- One Of The Largest Data Breach In History Leaked 16 Billion Passwords
- 23andMe Co-Founder Bids To Buy Back Data After Company Announces Bankruptcy
- How Is The UK Boosting The Cyber Sector?
Could New Rules On Stablecoins Change The Picture?
While prices swung, legislation in Washington argued over 2 rival bills on dollar‑pegged tokens. A House draft would bar issuers from paying interest to holders, whereas a Senate version allows limited yield. The final text could determine whether stablecoins attract ordinary savers away from bank deposits.
Bank groups warn that interest‑bearing tokens could tempt depositors away from traditional accounts, raising new questions for regulators and adding another source of uncertainty for the crypto space. The White House targets August for a finished bill, setting a tight timetable for compromise.
Tether, the largest dollar‑linked coin, already carries a $144 billion valuation and earned about $13 billion this year through holdings in Bitcoin, gold and US Treasuries. Its scale means any rule change will ripple across the entire market, especially at a time when tariff news has already put digital assets on edge.
Where Might Prices Stabilise After This?
Market data mark $75 000 for Bitcoin and $1 500 for Ethereum as near‑term support, levels that coincide with late‑2023 ranges. Below those lines, charts point to $65 000 and $57 000 as the next areas of interest, tied to past trading clusters.
On the upside, resistance sit at around $87 000, where Bitcoin paused before the latest fall. Price action in the coming days will likely track new tariff signals and progress on the stablecoin bills.
Until those headlines settle, crypto traders face a market that moves at the speed of politics, not code.
Since returning to office, Trump made friendly moves towards cryptocurrency. He appointed regulators supportive of digital assets. He also showed enthusiasm for cryptocurrencies, launching a meme coin for his supporters.
Yet Trump’s tariff announcement seemed to change attitudes. His decision, which negatively affected global markets and digital assets, could have possibly damaged his pro-crypto reputation. Traders who once felt optimistic about Trump’s support now felt uncertainty.
The fast price drop demonstrated Bitcoin’s continued sensitivity to world news. Investors who earlier thought Bitcoin would always rise with Trump’s support now face reality. The coin behaves similarly to other high-risk investments, falling quickly when markets sense trouble.