Trump Tariffs: Since the U.S. President imposed a new wave of reciprocal tariffs, global markets have been thrown into turmoil. Both crypto and equity markets across leading economies have turned red, bleeding investors of millions in losses.
While the entire crypto market has felt the impact, a new Binance report suggests that meme and altcoins have suffered significantly more than major cryptocurrencies like Bitcoin.
Titled “Tariff Escalation and Crypto Markets: Impact Analysis“ and published on April 7, the report reveals that Bitcoin (BTC) has declined by 19.1% since the tariffs were introduced. In contrast, high-beta categories such as meme coins and AI tokens have plunged by over 50% since then.
Sharp Decline in Markets Post Trump tariffs
The report highlights that since the imposition of tariffs, the total crypto market cap has declined by approximately 25.9% from its January highs — effectively wiping out over $1 trillion in market value.
Since the Trump tariffs, Bitcoin (BTC) has dropped 19.1%, with most major altcoins matching or exceeding that decline. Second largest crypto by market cap, Ethereum (ETH) has dropped over 40%, while high-beta categories like Memecoins and Artificial Intelligence (AI) have plunged more than 50%.
Notably, in the past 24 hourss itself, as Trump’s “reciprocal tariff” took effect on Tuesday, Bitcoin Price has dropped by 5.47% to trade at below $75,000. ETH is leading the decline at 9.57% since the tariff policy took effect while the Memecoins sector has declined by 7.31%.
The report also explains the evolving relationship between crypto and traditional market address.
Crypto and Equity Market Reflect Growing Co-Relation
Amid trade war tensions, Bitcoin’s market behavior is shifting. Crypto assets have moved largely in lockstep with equities – crypto is down 25.9%, the S&P 500 by 17.1%, while gold witnesses decline of 10.3% .
Initially moving independently, BTC’s 30-day correlation with equities dipped to –0.32 in February but climbed to 0.47 by March as risk-off sentiment intensified. Meanwhile, its correlation with gold turned negative, hitting –0.22 in April.
Thus, the report highlights that macroeconomic factors continue to play a role in driving crypto market volatility and behaviour.
Fed likely to Make Rate Cuts With Risks of Stagflation
Calling the Trump Tariffs as the most agressive tariffs since 1930s, the report says that new tariffs will end up in substantial tax hike on imported goods. This will ultimately bring inflationary pressures for consumers – something the Federal Reserve (Fed ) has been trying to arrest.
It also highlights the impact of Trump Tariffs not only on the impacted economies but also in its own domestic economy. It predicts that US real GDP per capita can fall by 1% in the early stages, with the world economy losing up to US$1.4 t in total output production.
It suggests higher chances of Fed rate cuts in the months ahead.
Can BTC act as the Safe Haven Asset During Volatility Periods
According to Binance Research, Bitcoin’s role as a safe haven during periods of market volatility is currently uncertain.
Bitcoin’s correlation with traditional markets tends to rise during acute stress but fades as conditions normalize.
The recent resurgence of U.S.-led trade protectionism in 2025, particularly, by Trump tariffs, has led to increased market volatility, with significant impacts on both traditional and crypto markets.
While Bitcoin has shown resilience in some instances, its correlation with traditional risk assets has fluctuated, suggesting that macroeconomic factors like trade policies and interest rates are increasingly influencing its behavior.
Therefore, the report argues that while Bitcoin may offer diversification benefits, it cannot be consistently relied upon as a safe haven asset during volatile periods.
Crypto Market in Post Trump Tariffs World
Crypto markets now face a tough macro landscape shaped by trade risks, stagflation, and weak global coordination. If economic growth slows and crypto lacks a clear narrative, investor sentiment could erode further.
It suggests that a prolonged trade war may also reduce retail participation, institutional investment, and VC funding.
Key factors to watch include new trade developments, core inflation data, global growth signals (like jobless claims or PMIs), and central bank actions.
A dovish pivot may boost crypto, while hawkish stances could hurt it. Crypto-specific catalysts like ETF approvals or regulation shifts could break macro dependency—but unresolved legal or policy hurdles may also drag sentiment.
The report, thus, concludes that crypto’s trajectory now hinges on both macro and crypto-native triggers.
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