Home World Business Trump Coin Leads Meme Crypto Crash as Tariffs Shake Markets

Trump Coin Leads Meme Crypto Crash as Tariffs Shake Markets

Trump Coin meme crypto crash
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Meme cryptocurrencies tumbled over the weekend after President Donald Trump signed sweeping tariffs on Mexico, Canada, and China. The move ignited a global trade war, sending shockwaves through financial markets and prompting investors to dump risky assets, including the Trump Coin meme crypto crash.

Trump Coin and Meme Cryptos Plunge

Trump’s own meme coin, Official Trump, saw a sharp decline, falling 15% to $17, according to CoinGecko. The token, which launched just over two weeks ago, had surged to $73 during its launch weekend but later crashed 50% on Inauguration Day.

Other popular meme cryptocurrencies suffered significant losses:

  • Dogecoin (DOGE) and Shiba Inu (SHIB) dropped 14%.
  • Pudgy Penguins fell 13%.
  • Dogwifhat (WIF) tumbled 26%.

Overall, the meme coin market declined 17% in the past 24 hours, highlighting investor uncertainty.

Trade War Sparks Market Selloff

The selloff began Saturday evening after Trump signed an executive order imposing 25% tariffs on imports from Mexico and Canada, along with a 10% duty on Chinese goods. The U.S. engages in over $1.6 trillion in trade with these three nations, making the tariffs a significant economic event.

James Davies, CEO and co-founder of Crypto Valley Exchange explained the impact on the crypto market:
“Every coin that rallied through January, including meme coins like Dogecoin, has essentially given back most of its gains.”

He added:
“Crypto is fundamentally about financial freedom, which clashes with the global political narrative of the past week. As a community, we favor free trade, and when that is restricted, investors become risk-averse, massively impacting altcoins.”

Meme Coins: From Boom to Bust?

Meme cryptocurrencies saw huge gains after the U.S. presidential election, with some traders believing the Trump administration would fuel a new crypto boom. However, others warned that the rapid rise of Trump-fueled meme mania could lead to painful losses and misallocation of funds within the crypto space.

Bitcoin’s Relative Stability

While meme coins suffered heavy losses, Bitcoin’s decline was more modest. The world’s largest cryptocurrency fell just 3%, proving more resilient than high-risk altcoins. However, analysts warn that Bitcoin could face additional pressure as Trump’s tariffs escalate the global trade war.

Conclusion

The meme coin crash highlights the volatility of cryptocurrency markets, especially during times of global economic uncertainty. As the trade war unfolds, investors will closely watch how cryptocurrencies react to further political and financial developments. Meanwhile, Trump’s own crypto token remains under pressure, mirroring the broader market’s cautious sentiment.

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