Trump's tariff hikes cause traders to seek safety, crypto markets plummet

Cryptocurrency traders have significantly reduced positions in a range of tokens in response to the tariffs announced by US President Trump over the weekend. Data shows that on Monday morning, Ethereum, the second-largest digital asset by market value, plummeted by 27% to $2,135 in Asian markets before recovering slightly. This is the largest intraday drop for the token since May 2021. The negative sentiment in the market has also put pressure on other cryptocurrencies, with Bitcoin falling by nearly 6% at one point and smaller tokens experiencing even greater losses. Caroline Bowler, CEO of BTC Markets, stated, "Trump's tariff war is affecting the entire market, and concerns about trade wars and stagflation leading to economic recession are spreading to all cryptocurrencies and Bitcoin."