Altcoins fell sharply on Friday after U.S. President Donald Trump announced new tariff threats against the European Union and Apple. Ethereum dropped about 4.1% to $2,550, while XRP and Dogecoin also fell by around 3.6%. Solana saw a smaller decline of 0.8%.
Trump said the U.S. could impose a 50% tariff on goods imported from the EU starting in about nine days. He also suggested a 25% tariff on iPhones not made in the U.S., but did not give a start date.
The news hit altcoins harder than Bitcoin because altcoins are riskier investments. Zach Pandl, head of research at Grayscale, said altcoins have more downside in a trade conflict and many won’t benefit from moves away from the U.S. dollar.
Bitcoin’s price fell 2.7% to $108,500 but still remains close to its recent record high. Pandl believes the trade tensions could actually increase Bitcoin adoption over the medium term because Bitcoin is seen as a safe-haven asset.
The price of gold rose as investors looked for safer places amid worries about trade and the U.S. dollar. Wall Street stocks also opened lower on Friday.
Some smaller coins, like the meme coin Official Trump ($TRUMP), dropped sharply by 13% after the president recently hosted a private dinner for its top holders.
While Bitcoin’s dominance in the crypto market is still strong at over 62%, analysts warn that a real altcoin rally might not happen soon. Ongoing global uncertainties could push investors toward safer assets like Bitcoin instead of riskier altcoins.
Follow on Google News
Leave a comment