Crypto Market in Turmoil! XRP Drops 5% After Trump’s Trade War Move

US President Donald Trump has fulfilled a key campaign promise by imposing reciprocal tariffs globally, starting April 5. This move has fueled concerns about an escalating trade war, leading to uncertainty across financial markets.

The cryptocurrency market reacted swiftly, with XRP dropping 5% on Wednesday following the announcement. Other digital assets also saw increased volatility as investors tried to assess the impact of rising economic tensions.

Currently Bitcoin price trading at $1.98 as per Coinpedia Market data.

For a more detailed XRP price prediction 2030, check out our full analysis!

Crypto Market Faces Volatility

Market experts believe the lack of an immediate reaction from crypto traders signals a collective shock. Many are uncertain whether these tariffs will remain in place or if policy shifts could alter the situation.

Kirill Kretov, Automation Expert at CoinPanel, commented:

"Many investors are staying on the sidelines until there’s more clarity. Crypto prices are vulnerable to manipulation, and only the most agile traders will benefit from this volatility."

The XRPUSD H1 chart indicates a breakout at a key support level, which could now act as resistance. If the price continues downward, buyers may wait for a deeper dip before entering the market.

Stock Markets Plunge as Trade War Fears Grow

Traditional financial markets have also felt the heat. Major stock indices across the US and Europe declined sharply, with key sectors like automotive and retail hit the hardest.

• DAX (Germany) dropped 1.3%, reflecting Europe’s concerns over supply chain disruptions.

• Euro Stoxx 50, S&P 500, and Nasdaq 100 all fell, mirroring trade war fears.

• Gold prices soared to record highs, as investors sought safe-haven assets.

Analysts warn that these aggressive tariffs could increase global economic instability, raising inflation risks and slowing down growth. The uncertainty has driven investors away from risk assets, affecting both traditional stocks and crypto markets alike.

What’s Next for Crypto?

With trade war fears rattling the markets, Bitcoin and altcoins could face further price swings. However, volatility also creates trading opportunities for those who can navigate the uncertainty.

For now, investors remain cautious, watching for further developments that could shape the future of global markets and the crypto industry.