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Bitcoin dropped on Thursday as risk sentiment worsened following U.S. President Donald Trump's announcement of a 10% universal tariff on all imports, along with much higher reciprocal duties on specific countries, including major trading partners.

The world's leading cryptocurrency fell by 0.8%, reaching $83,421.50 by 01:32 ET (05:32 GMT). Trump Unveils Tariff Overhaul, Sparks Global Market Decline  

President Trump introduced a major change in U.S. trade policy on Thursday, with a 10% universal tariff on all imported goods, effective April 5, 2025. He also unveiled reciprocal tariffs targeting countries with significant trade barriers against U.S. products, set to begin on April 9, 2025. These tariffs are about half of the rates those nations impose on U.S. exports.

China now faces a total tariff of 54%, with an added 34% surcharge. Other countries affected include Japan (24%), the European Union (20%), India (26%), and Vietnam (46%). Additionally, a 25% tariff on foreign-made cars and key auto parts will take effect on April 3, 2025.

These announcements have raised fears of a full-scale global trade war, which has caused broader market sell-offs. Major U.S. stock index futures fell sharply in early Asia hours, and most Asian stock markets saw significant drops.

Bitcoin, which is sometimes seen as "digital gold" in times of economic uncertainty, has struggled in this environment, reflecting a decrease in risk appetite. Investors tend to avoid volatile assets like cryptocurrencies during such times, turning instead to more traditional safe-haven investments like gold. Gold reached a record high during Asian trading on Friday.

Crypto Stocks Decline Amid Broad Market Drop Shares of cryptocurrency-related companies saw significant declines in extended trading on Wednesday, mirroring the broader market downturn. Coinbase Global Inc (NASDAQ: COIN) dropped 7.5%, while Bitcoin mining companies Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) fell 7.3% and 7%, respectively. MicroStrategy (NASDAQ: MSTR), now known as Strategy, saw its shares decrease by 4.6% after the bell.

Crypto Prices Today: Solana and Altcoins Down, $TRUMP Plunges. Most altcoins followed Bitcoin’s downward trend on Thursday. Ethereum, the second-largest cryptocurrency, fell by 1.2% to $1,832.57, while XRP, the third-largest, dropped by 0.2% to $2.0687. Solana declined 3.2%, Cardano fell 1.8%, and Polygon dropped 3.5%. Among meme tokens, Dogecoin slipped by 1%, and $TRUMP saw a more significant loss of over 7%.

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