Trump's tariff threat sends crypto prices falling

Cryptocurrency prices took a hit from the prospect of a trade wa r between the U.S. and its major trading partners, with some well-known digital assets seeing values fall more than 10%.

Bitcoin fell below $100,000 after U.S. President Donald Trump announced plans Saturday to start putting large tariffs on goods from Canada, Mexico and China.

The world’s most popular cryptocurrency fell to about $92,000 Sunday night before rebounding to around $99,000 by Monday morning after Trump announced a pause on the tariffs on Mexican goods.

Ethereum, dogecoin, and other popular cryptocurrencies saw significant price drops – some more than 10% -- since Trump’s weekend tariff announcement. Trump’s own meme coin, which he launched just before taking office, also saw a huge drop.

“Those are riskier cryptos” than bitcoin, said Garrick Hileman, an independent cryptocurrency analyst. “But it’s a little surprising how big the gap is.”

The sell-off was part of a worldwide drop in financial markets on the eve of Trump’s tariffs going into effect. Trump warned Americans they may feel “some pain” from the tariffs, which he said would be “worth the price” to make America great again. He also said Sunday night that import taxes will “definitely happen” with the European Union and possibly with the United Kingdom as well.

Bitcoin was created in 2009 as a kind of electronic cash uncontrolled by banks or governments. It and newer forms of cryptocurrencies have moved from the financial fringes to the mainstream in recent years, with bitcoin’s price movements largely tracking that of tech stocks.

Trump’s meme coin was trading at about $19 Monday, which is about 75% off the all-time high it reached right after Trump launched the coin on the eve of his second inauguration. First Lady Melania Trump’s new meme coin has seen an even bigger drop from its all-time high – nearly 90% -- and is currently trading at about $1.50.

Meme coins are a highly volatile corner of the crypto industry that often start as a joke with no real value but can surge in price if enough people are willing to buy them.

Trump is a former crypto skeptic who has since warmly embraced digital assets, both as a source of personal wealth and as a matter of government policy. He’s promised to make the U.S. the world capital of crypto and appointed several crypto-friendly officials to key government positions.

Cryptocurrencies have enjoyed a surge in value since Trump’s election and bitcoin is still trading near its all-time high of $109,000.