The cryptocurrency market turned sharply lower on Friday following comments from U.S. President Donald Trump, who announced plans to impose new, “extreme” tariffs on Chinese imports.
The statement rattled global investors and triggered a broad sell-off across both crypto and traditional markets.
Bitcoin fell below the $120,000 mark for the first time this week, while Ethereum slipped closer to $4,000. Other leading assets such as XRP, Solana, and Dogecoin also saw declines as traders reacted to growing fears of a renewed trade conflict between the world’s two largest economies.
Trump’s remarks, posted on his Truth Social account, suggested that Washington is considering “massive increases” in tariffs targeting Chinese goods. The president claimed the move would ultimately benefit the U.S., but acknowledged that it could bring short-term pain.
The announcement sent shockwaves through financial markets, with stock futures dropping and major indices in Asia and Europe posting losses. Analysts noted that investors are once again seeking safety in stable assets as uncertainty surrounding trade and inflation deepens.
Bitcoin and Ethereum, which often mirror broader risk sentiment, led the decline in the digital asset space. Trading volumes surged as liquidation levels spiked, signaling that traders are bracing for increased volatility over the weekend.
