News 
April 16, 2025 
5 min. 
The cryptocurrency market witnessed a fresh wave of losses following the U.S. government’s decision to impose heavy tariffs, as high as 245%, on Chinese imports. This move, led by President Donald Trump, has escalated tensions in the ongoing trade war, sparking broader economic uncertainty.
As concerns mount over global market stability, investor confidence in digital assets has taken a hit. Bitcoin dropped over 2% in the last 24 hours, while major altcoins like Ethereum (ETH), Ripple (XRP), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) saw declines ranging between 4% and 7%, erasing much of their recent gains.
The sell-off underscores the growing sensitivity of the crypto sector to geopolitical and macroeconomic developments.
Crypto Market Update: Trump’s 245% Tariff Reignites Trade War Jitters
Cryptocurrency prices edged lower today following a dramatic policy move by U.S. President Donald Trump, who announced steep new tariffs on Chinese imports, some as high as 245%. The latest round of duties, detailed in an official White House release late Tuesday, targets key minerals and associated goods, citing national security and the need to strengthen U.S. economic resilience.
The fact sheet emphasized that the tariffs are a direct response to China’s ongoing retaliatory measures and lack of cooperation in previous negotiations. While this isn’t the first escalation in the trade dispute, the intensifying tension continues to rattle investor confidence in the crypto sector, further weighing on digital asset performance in recent weeks.
Heavy Tariffs on China Fuel Economic Tensions
What started as a modest 20% tariff quickly escalated into a full-blown trade standoff between the U.S. and China. On April 2nd, the tariff rate jumped to 34%, and as diplomatic strains deepened, the U.S. raised it further to 104%. China retaliated with its own countermeasure—a steep 84% tariff on American goods.
In a swift response, the U.S. increased its rate once more to 125%, though it strategically exempted specific tech products from China. This brief exception helped ease market concerns temporarily. However, China soon matched the hike, bringing its tariff to 125% as well.
Tensions hit a boiling point this week when the U.S. announced a sweeping 245% tariff on a broad range of Chinese imports. The White House defended the move as necessary to safeguard national security, spur innovation in the tech sector, and strengthen critical infrastructure.
With China exporting over $400 billion in goods to the U.S. annually, according to Reuters, the economic consequences of this aggressive policy are now rippling across financial markets, including a notable impact on the volatile crypto space.
Crypto Market Performance Update
The global crypto market cap dropped by 2.3% to $2.63 trillion, with daily trading volume declining 6% to $73.89 billion. The Fear and Greed Index currently stands at 29, signaling market fear.
Bitcoin fell 2.5% to $83,368.76, while Ethereum declined 5% to $1,566. XRP dropped 4% to $2.04, and Solana slipped 3% to $124.89.
Cardano saw a 7% decline to $0.6032. Among meme coins, Dogecoin dropped 5% to $0.1528, and Shiba Inu fell 3% to $0.00001160.
Bitcoin Whales Sell Off as Market Pressure Mounts
Bitcoin’s recent price decline aligns with continued selloffs by major holders. Whale activity suggests reduced confidence in BTC, driven by profit-taking and increased market uncertainty amid U.S.-China trade tensions.
Analyst Ali Martinez noted that whales have sold over 29,000 BTC since April 9. In a recent post on X, he confirmed the trend, stating that profit-taking intensified during the latest rally.
Ongoing concerns over Trump’s tariff measures have further impacted investor sentiment, contributing to the broader crypto market downturn.
