In the past 24 hours, while global investors scrambled to hit the panic button, meme coins like Dogecoin, Shiba Inu, Pepe, and Bonk plunged into freefall, posting double-digit losses that left their playful mascots looking anything but cheerful.
Tariff Turbulence Sparks Selloffs
The trouble began when U.S. President Donald Trump announced sweeping tariffs on imports from 185 countries. These new measures set off alarm bells across markets, triggering fears of a global slowdown. As a result, cryptocurrency traders hit the exit button on riskier assets. Dogecoin, for instance, took quite a dive—it fell 16.6% in just 24 hours, with its price tumbling to $0.1377.
Shiba Inu wasn’t spared either, shedding 11.3% to trade at $0.00001077, while Pepe and Bonk posted losses of 13.9% and 13.8% respectively. Notably, Trump’s very own Official Trump (TRUMP) meme coin, which launched back in January, has now slumped 16% to $7.60.
On top of that, the entire meme coin market has seen a rough 17% drop in value, with the total capitalization sinking to $41.7 billion as reported by CoinGecko. Talk about a digital slap in the face!
Bitcoin’s Price Under Pressure
While meme coins were plummeting, Bitcoin was feeling the heat too. Earlier in the day, Bitcoin traded around $85,500 but then took its cues from the broader market downturn. Amid the chaos, futures contracts forced Bitcoin below $77,000—a level that flashed red flags across trading desks. Currently, Bitcoin has slipped over 8% to $76,328, as the overall crypto market capitalization tumbles to below $2.5 trillion, a decline of 10.8% from the previous day.
The volatility is palpable. During Trump’s tariff announcement, stock markets weren’t spared either. The S&P 500 futures dropped nearly 6% on Sunday evening, while Bitcoin’s quick slide amplified investor concerns about an impending domino effect between traditional and crypto assets.
Why It’s Good for Bitcoin—According to Arthur Hayes
In a characteristically bold X post on April 5, BitMEX co-founder Arthur Hayes declared his love for tariffs, arguing that the pain caused by “printed money” could be just what Bitcoin needs to rally.
“Global imbalances will be corrected, and the pain papered over with printed money, which is good for BTC,” he fumed.
Hayes explained that weaker conditions, such as a falling US Dollar Index and a weakened yuan—potentially reaching an exchange rate of 10.00 thanks to a 65% effective tariff—will drive investors towards safe-haven assets like Bitcoin and gold over the medium term.
Connecting the Dots Between Tariff Tensions and Crypto
Hayes' bullish outlook hinges on the notion that rising tariffs will force countries to re-balance their economic strategies. With major players like China facing a 34% tariff, the downward pressure on local currencies might prompt a flight to Bitcoin. Meanwhile, tight trading conditions in U.S. markets—evidenced by the Philadelphia Fed’s Business Outlook Survey for the first time dipping below 15 since early 2024—suggest that uncertainty may continue to weigh on equities, making decentralized alternatives more attractive.
Adding fuel to the fire, crypto liquidations have spiked dramatically, with $1.4 billion in leveraged positions wiped out over the past 24 hours, including a stunning $460 million from Bitcoin trades alone, according to CoinGlass. Such intense market culling further underscores the fear permeating investors’ minds.
HODL Team
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