03.02.2025 11:33
President Trump's new tariff plan targeting Canada, Mexico, and China has led to sharp declines in the cryptocurrency market. The price of Bitcoin (BTC) has fallen below the psychological threshold of $100,000. Following the tariff decision, in addition to the prices of Bitcoin and Ethereum, the assets most affected were memecoins.
The cryptocurrency market was shaken by a massive wave of selling following the Trump administration's new trade policy. It was stated that tariffs aimed at the three major trading partners would be implemented to prevent the flow of drugs. The decline in the market was more pronounced in memecoins.
Global Trade Tensions Shake the Crypto Market
The Solana-based memecoin index lost more than 13% in value in the last 24 hours. According to CoinMarketCap data, 19 of the top 20 memecoins experienced a decline of more than 20% in the past week. While Trump's own memecoin lost 30% in the last week, Melania Trump's coin also saw a loss of 38%.
In the index covering the top 30 tokens by market capitalization, it performed better with a decline of 7.15% compared to the double-digit percentage losses of other indices. The Wall Street Journal described the development as "the dumbest trade war in history."
China announced on Sunday that it would file a lawsuit with the World Trade Organization regarding tariffs. Canada and Mexico are also preparing for retaliatory tariffs.