Crypto Market Crashes as Trump Threatens New Trade Tariffs: DOGE, XRP Lead Losses
- Why Did the Crypto Market Drop Today?
- Which Cryptocurrencies Were Hit Hardest?
- BNB’s Surprising Rally Amid the Chaos
- Trump’s "Carrot and Stick" Trade Policy
- Inflation Fears and Crypto’s Sensitivity
- What’s Next for Traders?
- FAQs: Crypto Market and Trump Tariffs
The cryptocurrency market plunged on July 23, 2025, after former U.S. President Donald Trump renewed threats of aggressive trade tariffs, sparking fears of a global economic showdown. Major assets like Dogecoin (DOGE) and XRP led the sell-off, with the total crypto market cap shedding $40 billion in 24 hours. While most tokens bled, BNB defied the trend, hitting a record high. Here’s why traders are bracing for more volatility.
Why Did the Crypto Market Drop Today?
The crypto market faced its steepest single-day decline in weeks after Trump doubled down on his tariff strategy via Truth Social. The former president warned of "much higher tariffs" unless trading partners fully open their markets to U.S. goods. This triggered a risk-off sentiment across financial markets, with crypto—often seen as a speculative asset—taking the hardest hit.
Which Cryptocurrencies Were Hit Hardest?
Data from CoinMarketCap reveals the bloodbath’s biggest losers:
- DOGE: -6.61% at $0.24
- XRP: -6%
- Cardano (ADA): -5.38% at $0.80
- Hedera (HBAR): -6.22%
- Shiba Inu (SHIB): -6%
Even bitcoin (BTC) dipped 0.55%, though it held above $118K—likely due to its status as a relative "safe haven."
BNB’s Surprising Rally Amid the Chaos
In a twist, Binance Coin (BNB) surged to an all-time high of $809. Analysts at BTCC attribute this to growing institutional interest, with some predicting a $1,200 target. "BNB’s ecosystem growth is insulating it from macro shocks," noted one analyst.
Trump’s "Carrot and Stick" Trade Policy
The former president framed his approach as reciprocal: "I’ll only lower tariffs if countries open their markets." Treasury Secretary Scott Bessent reinforced the August 1 deadline for compliance, boasting $100B in tariff revenue so far. Markets had briefly hoped for extensions, but Trump’s latest remarks crushed those expectations.
Inflation Fears and Crypto’s Sensitivity
June’s U.S. CPI came in at 2.7%—higher than expected—fueling concerns that new tariffs could worsen inflation. This might force the Fed to delay rate cuts, keeping pressure on risk assets. "Crypto thrives on liquidity; tighter policies are kryptonite," observed a BTCC market strategist.
What’s Next for Traders?
With the August 1 deadline looming, volatility is expected to intensify. Historical data shows crypto often rebounds after geopolitical shocks, but analysts warn: "This sell-off could deepen if trade talks collapse."
FAQs: Crypto Market and Trump Tariffs
How much did the crypto market lose?
The global crypto market cap fell by $40 billion in 24 hours.
Why is BNB rising while others fall?
BNB benefits from Binance’s expanding utility and institutional backing, making it less reactive to macro trends.
Could tariffs trigger a crypto winter?
Unlikely short-term, but prolonged trade wars may suppress bullish momentum.
