• Bitcoin (BTC) plummeted sharply on Friday after U.S. President Donald Trump shocked markets with his declaration of broad tariffs on major foreign trade partners
• The top cryptocurrency fell by more than 8% in 24 hours
• Ethereum, the second-largest cryptocurrency by market cap, also fell

Bitcoin (BTC) plummeted sharply on Friday, falling below the $60,000 level for the first time in over two months. The fall came after U.S. President Donald Trump shocked markets with his surprise declaration of broad tariffs on major foreign trade partners, including China and the European Union.

The top cryptocurrency fell by more than 8% in 24 hours, trading as low as $58,400 on notable exchanges. The sell-off erased billions from the global total crypto market capitalization, which subsequently dipped. At press time, the coin is trading at $112,129.08, with a 4.95% increase rate.

Market Sentiment Turns Bearish

The market response was quick. Sentiment moved from “Neutral” to “Fear” in a matter of hours following the news on tariffs. The index, which measures market sentiment in terms of volatility, volume, social media, and other metrics, fell, which is a sign of increasing investor fear.

The shift in sentiment has been put down by analysts to increasing fears of global economic turmoil and the possibility that it has on various risk assets. When uncertainty increases, investors will switch away from risky assets such as cryptocurrencies to safer bets like the U.S. dollar or gold.

Also Read: Bitcoin (BTC) Price Holds Firm: $200M Short Trade Raises Eyebrows Ahead of Trump Statement

Altcoins Follow Bitcoin’s Lead

The downturn was not limited to BTC. Ethereum, the second-largest cryptocurrency by market cap, also fell. Other major altcoins such as Solana, Cardano, and Avalanche also posted double-digit losses. Decentralized finance (DeFi) tokens and meme coins experienced steeper drops, with significant losses in value in a matter of hours. Trading volume surged across the board, indicating widespread panic selling.

Trump’s new tariffs, introduced in a news conference, are meant to lower trade deficits and put pressure on foreign governments in trade negotiations. But the move sent shivers of fear about a renewed global trade war, spreading shockwaves through traditional and digital asset markets. U.S. Treasury yields edged up, and equity markets plummeted. The VIX volatility index also jumped, further confirming the overall market’s risk-off mood.

Investors are recommended to keep a close eye on macroeconomic events, since additional geopolitical or financial turmoil might still affect crypto prices in the short term.

Also Read: Bitcoin Crashes Below $105k as Trump’s 100% China Tariff Triggers Huge Sell-Off