Crypto Market Plunges After Trump Rally

CRYPTO
Crypto Market Plunges After Trump Rally

The crypto market faced a sharp selloff on Tuesday as Cardano (ADA), Ripple (XRP), and Solana (SOL) each plunged 21%, reversing all gains from President Donald Trump’s announcement of a U.S. crypto strategic reserve. The drop followed an initial rally that saw ADA soar over 60%, XRP climb 33%, and SOL jump 22% after Trump declared these tokens would be included alongside Bitcoin (BTC) and Ethereum (ETH) in the reserve.

The reversal was driven by profit-taking and a broader risk-off sentiment in global markets. Investors grew cautious amid Trump’s new tariff announcements on Canada, Mexico, and China, which sparked uncertainty across financial markets.

"Trump’s latest tariff hikes triggered a massive selloff in crypto, completely erasing the previous day’s gains,” said Kevin Guo, director of HashKey Research. He added that despite pro-crypto regulatory moves, traders still view digital assets as high-risk investments tied to U.S. equities.

Meanwhile, China retaliated with a 15% tariff on various imports after Trump doubled tariffs on Chinese goods to 20%. The impact rippled across crypto markets, with Bitcoin (BTC) falling 9% to $84,000 and Ethereum (ETH) losing 12%, dropping below $2,000 for the first time since 2023.

With the White House Crypto Summit set for Friday, investors are awaiting more clarity, though volatility is expected to continue depending on the outcome of the talks.
Get $100 FREE When You Deposit $50 on Binance

FINANCE
Stocks Sink as Trump Confirms Tariffs

U.S. stocks fell sharply Monday after President Donald Trump confirmed that 25% tariffs on Mexico and Canada would take effect Tuesday, with additional reciprocal tariffs set for April. Markets had hoped for another delay, but Trump stated there was “no room left” for negotiation.

The Dow Jones dropped 650 points (-1.5%), the S&P 500 fell 1.8%, and the Nasdaq slid 2.6%. Investors rushed into U.S. Treasuries, sending the 10-year yield down to 4.16%.

Both Mexico and Canada plan to impose retaliatory duties, adding to economic uncertainty. Trump has also doubled tariffs on China and threatened levies on the EU, steel, autos, and pharmaceuticals.

Amid rising costs, economic indicators have weakened. The Atlanta Fed now projects Q1 GDP to shrink by 2.8%, compared to 2.3% growth in February. Investors will watch Friday’s jobs report closely, as Musk’s Department of Government Efficiency cuts federal jobs.

FINANCE
TSMC Invests $100B More in U.S.

President Donald Trump and TSMC CEO C.C. Wei announced Monday that Taiwan Semiconductor Manufacturing Co. (TSMC) will invest an additional $100 billion in the U.S., bringing its total U.S. investment to $165 billion. The world’s largest chipmaker, TSMC supplies Apple, Intel, and Nvidia, and is already building three chip plants in Arizona following $65 billion in previously announced investments.

The new investment will fund three more manufacturing plants and two packaging facilities in Arizona, creating thousands of high-paying jobs. Trump called the move a “matter of economic security,” emphasizing the need for domestic semiconductor production.

Trump has criticized Biden’s CHIPS Act, arguing that tariff threats, not federal subsidies, are driving investments. Since taking office, Trump has hosted tech leaders like OpenAI, Oracle, and Apple, securing commitments of over $1 trillion in U.S. investments.

“It’s the incentive we’ve created. Or the negative incentive,” Trump said, referencing his aggressive trade policies.

Exclusive Crypto Bonus – Claim Now

Get $100 FREE When You Deposit $50 on Binance

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.