How Trump’s Trade Policies Are Reshaping the Crypto Market in 2025

Trade wars meet blockchain—Trump's latest policies send shockwaves through crypto.

Subheader: Bitcoin and altcoins react as geopolitical tensions fuel volatility.

Markets don’t wait for consensus. Bitcoin whipsawed 12% in 24 hours after Trump’s tariff announcement, while DeFi tokens like UNI and LINK shrugged it off—classic crypto divergence. Traders piled into stablecoins (because nothing says ‘safe haven’ like a digital dollar peg).

Subheader: Regulatory chess game intensifies

The White House’s trade playbook now includes crypto capital flows. China’s digital yuan gains traction as US exchanges face scrutiny—ironic, given Washington’s usual free-market sermonizing.

Closing jab: Wall Street still can’t decide if crypto’s a hedge or a hazard. Meanwhile, the blockchain keeps grinding forward—policy-proof and politician-agnostic.

Trump’s New Trade Moves Towards Mexico and the EU

Through letters published on his Truth Social account, TRUMP informed Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen of the new tax decisions. Trump justified his actions by highlighting Mexico’s insufficient efforts regarding border security. Additionally, he emphasized that the trade relations with the EU lack fairness.

Furthermore, Trump sent a letter to the European Commission President stating that the trade relations with the EU are not reciprocal.

Earlier in the week, Trump imposed new tariffs on various countries, including South Korea, Japan, Canada, and Brazil. With tax rates reaching up to 50% on commodities like copper, these developments have caused turbulence in the markets.

Cryptocurrency Declines and XRP’s Divergence

Following Trump’s announcements, Bitcoin (BTC)$117,441 fell by 0.6%, reaching a level of $17,400. According to data provider CoinDesk, while BTC attempted several times to exceed $118,000, it failed to sustain this level. Ether (ETH) decreased by 1%, trading at $2,930. Meanwhile, Solana$159 (SOL) and DOGE dropped by over 2%, while BNB experienced a 0.7% loss. Despite these declines, XRP stood out with a rise of 1.78%.

After a mid-week rise, market movements continued indecisively. Some analysts predicted a flat weekend, suggesting that market volatility might increase as Asian trading begins.

This statement reflects expectations that the market would remain flat over the weekend, with bitcoin potentially surpassing the $120,000 mark as Asian markets engage.

While Bitcoin’s short-term volatility captured attention, attempts to breach historical resistance levels resulted in increased selling pressure. Analysts remarked on the continued fluctuation in risk-taking behavior in the market. XRP’s rise, independent from the broader market, drew attention from industry followers.

Movements observed in the crypto assets often reflect the impact of global trade policies, especially those implemented by major economies, causing short-term volatility. The broader crypto market sees investors treading cautiously, while major digital assets like BTC and ETH maintain their sensitivity to new developments.

It is anticipated that the cryptocurrency markets might respond differently to the aforementioned developments. Particularly, the implications of new trade policies on the market need close monitoring. High volatility periods require investors to exercise caution. Staying informed on market conditions and global developments can aid investors in shaping their strategies.