Tariff Shockwaves Rock Crypto Markets: Bitcoin, Ethereum, and Altcoins Reeling as Trump Resets Global Trade

The cryptocurrency market has faced a turbulent Q1 2025, with Bitcoin (BTC), Ethereum (ETH), and altcoins suffering steep corrections amid escalating global economic tensions. Market optimism tied to Donald Trump’s return to the White House quickly faded as a surge in geopolitical uncertainty and volatile tariff announcements drove investors into a risk-off frenzy.

According to a Kaiko Q1 report, the crypto market’s average weekly trading volumes dropped by over 30% compared to 2024, signaling reduced participation and growing caution. Key altcoins saw losses exceeding 50%, while BTC, which touched record highs in January, is now down over 25% from its peak.

Trump’s Tariff Policy Rattles Markets and Spooks Crypto Investors

President Trump’s re-introduction of aggressive trade tariffs has sent shockwaves through financial markets. Though Trump acknowledged the policies would cause short-term pain, his administration believes it’s a necessary economic correction.

Amidst rising volatility, the crypto space wasn’t spared. The Kaiko report highlights that offshore exchanges saw a steep decline in activity, while U.S.-based platforms like Coinbase, Kraken, and CEX.IO helped buffer BTC’s liquidity thanks to stronger market depth. Still, investor confidence remains shaky.

Chicago Fed President Austan Goolsbee raised red flags, comparing the current environment to early COVID-19 market conditions, warning that a sustained collapse in investor sentiment could damage broader economic stability.

Altcoin Bloodbath: AI Tokens, Meme Coins, and Cardano Plunge

Altcoins bore the brunt of the downturn. From AI tokens to meme coins, the Kaiko report suggests average losses surpassed 50% in Q1. Cardano’s ADA posted multi-year volatility highs, while Ethereum and Solana faced sustained downward pressure.

The divergence between BTC and altcoins is growing. Bitcoin’s volatility rose from 34% in February to 51% in March, but altcoins moved more erratically, making them unattractive to risk-averse traders. The gap in performance may lead to a renewed dominance of large-cap assets in coming months.

Bitcoin Price Forecast: Critical Resistance Ahead at $84K–$96K

After hitting a local high of $88,624, Bitcoin plunged below $80,000, eventually rebounding modestly to trade around $82,000. Analysts remain split. FxPro’s Alexander Kuptsikevich notes BTC is still testing the upper boundary of a long-standing correction trend. A breakout above $84,000 could set up a move to $96,000, but anything below $78,000 could invalidate bullish expectations.

CryptoQuant analysis emphasizes that BTC must reclaim $85,000 to regain positive momentum. Until then, Bitcoin remains locked in a range defined by macro uncertainty and tariff-related fear.

Ethereum (ETH) Approaching Historical Demand Zone Near $1,387

Ethereum has struggled, dropping below $1,500 this week. Analysts point to the MVRV Extreme Deviation Bands, noting ETH is nearing the -1 standard deviation pricing band at $1,387—a level that historically marked local bottoms. ETH’s realized price stands at $2,005, suggesting the current price may offer long-term value for patient investors.

However, short-term momentum remains weak. Despite a brief rally to $1,668 after Trump’s 90-day tariff pause, ETH failed to hold above $1,600 and now trades near $1,521.

Solana (SOL), Ripple (XRP), and ALGO: Pain Persists, But Buyers Show Signs of Life

• Solana (SOL) slipped below $100 but rebounded strongly, now trading around $118 with buyers targeting $120.
• Ripple (XRP) regained the $2 level after a sharp 14% rally, but remains volatile. Current price: $2.02.
• Algorand (ALGO) bounced off lows to trade at $0.183, facing resistance at the 20-day SMA.

All three assets show fragile recovery patterns as traders weigh tariff impacts and broader market instability.

Chainlink (LINK) and NEAR Protocol: High Volatility, Mixed Sentiment

• Chainlink (LINK) rebounded from a weekly low of $10.11 to trade at $12.57, gaining over 4% today. Resistance at $13 remains key.
• NEAR Protocol (NEAR) faced continuous pressure, falling to $2.12 with sellers dominating since last weekend. Buyers are still struggling to regain control.

The altcoin space continues to reflect broader risk aversion, with large-cap tokens offering more stability than speculative DeFi or Layer 1 assets.