Bitcoin experienced a 4% decline in the past 24 hours due to reports of potential new U.S. tariffs affecting major trading partners. President Donald Trump’s tariff announcements have created uncertainty among crypto traders, leading to fluctuations in Bitcoin and altcoin prices.
Earlier this week, Bitcoin’s price improved as traders hoped that Trump would introduce narrower tariffs than previously indicated. U.S. President Donald Trump had a call with Canadian Prime Minister Mark Carney on Friday morning, and initial reports from the conversation suggest positive developments.
Trump described the phone call as “very, very good” and expressed optimism, stating, “I think things will work out very well.” In response, Carney’s office announced that both nations agreed to engage in “comprehensive negotiations.”
The announcement of potential additional tariffs on Canada, China, and Mexico on April 2 remains uncertain. In the meantime, traders should anticipate continued volatility in Bitcoin and altcoin prices. Notably, Dogecoin (DOGE) and XRP have shown resilience despite Bitcoin’s significant price fluctuations amid tariff news.
Crypto sectors most affected by Trump’s tariff policies
Bitcoin has often dropped following major tariff announcements from Trump, while altcoins have faced even steeper declines. The combined market capitalization of altcoins has fallen by 4% in just one day and a staggering 23% since the start of the year. Presently, the total market cap of cryptocurrencies, excluding Bitcoin, is approximately 36% lower than its peak of $1.65 trillion recorded on December 7, 2024.
Among the hardest-hit sectors are meme coins, as well as tokens based on platforms like Solana and Base. Despite this, blue-chip meme coins such as Dogecoin have managed to retain their gains from 2024, while XRP demonstrated resilience following the Securities and Exchange Commission’s settlement of its lawsuit for $50 million.
Bitcoin, Dogecoin, and XRP emerge as the top crypto performers
Despite tariff news, Bitcoin has maintained stability and recovered from four flash crashes in this market cycle, which had previously wiped off 20% to 30% of its value. Analysts believe Bitcoin has reached a cyclical low below $77,000. Currently trading around $84,000, Bitcoin is witnessing increased demand from institutions interested in adding it to their portfolios.
Both Dogecoin, the leading meme coin, and XRP, the second-largest altcoin, have shown similar trends. Over the past six months, DOGE has gained 41%, while XRP has surged nearly 260%. Technical analyses suggest that DOGE may face resistance in the $0.20404–$0.21465 range, while a correction might find support near $0.16054.
XRP, on the other hand, faces potential declines with its indicators pointing towards negative momentum, although it has maintained its gains over the last six months due to the resolution of its legal issues. Depending on market movements, XRP might test support at $1.9575 or rally to $2.5900.
The impact of Trump’s tariff policies on altcoins and meme-based cryptocurrencies
Trade tensions have intensified with recent tariff announcements from President Trump, resulting in significant pressure on top altcoins like Cardano (ADA), Solana (SOL), and Chainlink (LINK), which have experienced substantial declines. Many altcoins are now trading between 60% and 90% below their all-time highs; however, Dogecoin and XRP continue to show resilience.
The crypto Fear & Greed Index, which currently scores 44, reveals that while trader sentiment remains fearful, it has improved slightly compared to previous weeks. Memecoins are particularly susceptible to price swings, often leading to heightened activity and volatility in response to market changes.
Lark Davis, a crypto analyst, emphasizes that ongoing tariff-related news could create a significant bear trap in the crypto market, suggesting more challenges for altcoin holders before any recovery signs appear.
As April 2 approaches, which marks a pivotal moment for potential tariff announcements, crypto traders are advised to maintain a cautious approach. Bitcoin could encounter resistance at the $88,000 level, which is crucial for the short-term outlook of the market.
Ethereum faces severe repercussions due to its role in DeFi
Ethereum, being the largest altcoin, has been labeled “dead” or a “zombie token” by some analysts throughout this downturn. Its crucial role in the decentralized finance (DeFi) ecosystem means that it suffers more under negative market conditions compared to other altcoins. High leverage among institutional players can lead to severe declines in ETH prices during market sell-offs.
According to Zack Shapiro from the Bitcoin Policy Institute, Ethereum has been disproportionately affected by downturns in the crypto market, facing significant sell-offs driven by automated trading systems. Therefore, as market volatility continues, Ethereum may demonstrate the most susceptibility to price declines.
