The decision of the President of the United States, Donald Trump, to impose new tariffs on imports from Canada, Mexico, and China has had a significant impact on XRP and Dogecoin. This complex scenario raises doubts among investors and traders about the long-term implications for the crypto sector.
Trump’s tariffs and the collapse of XRP and Dogecoin
The announcement by Donald Trump of new tariffs has profoundly shaken global markets, with stock indices registering a sharp decline. Bitcoin, often perceived as a safe haven asset, was not immune to this wave of economic uncertainty, experiencing a significant drop on Monday. This event highlights how trade policies can influence not only traditional markets but also the cryptocurrency sector, which remains vulnerable to geopolitical and macroeconomic events.
The response of China and the reaction of cryptocurrencies
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China, main target of Trump’s tariff policies, responded with retaliatory measures that further worsened the situation. In this context, cryptocurrencies like XRP and Dogecoin have shown increased volatility. After recording a 20% increase in the days following the tariff announcement, both cryptocurrencies underwent a significant correction. This behavior reflects the uncertainty dominating the market and the direct impact that geopolitical tensions can have on digital assets.
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XRP and Dogecoin: the emblematic case of crypto volatility
The trend of XRP and Dogecoin (DOGE) during this period highlights their sensitivity to external events. XRP, often considered a cryptocurrency linked to the traditional financial sector, has been affected by speculations about the future of trade relations between the United States and China. Similarly, Dogecoin, despite its origin as a meme coin, has shown a surprising correlation with the trend of global markets. These examples demonstrate how even cryptocurrencies with different characteristics can be influenced by macroeconomic factors.
The role of traders and the uncertainty in the long term
The response of traders to these events has been mixed. Some investors see the tariffs and geopolitical tensions as opportunities to accumulate cryptocurrencies at lower prices, while others fear that the uncertainty may continue to weigh on the market. The long-term impact of the tariffs imposed by Trump and China’s response is still difficult to predict. However, it is clear that the cryptocurrency sector is not isolated from global dynamics and that its evolution will also depend on external factors.
Conclusion: a crypto market influenced by global dynamics
The episode of Donald Trump’s tariffs and China’s response highlights how the cryptocurrency market remains closely tied to geopolitical and macroeconomic events. The performance of XRP and Dogecoin demonstrates that volatility is an intrinsic characteristic of this sector, but also a source of opportunities for more experienced investors. In a context of growing uncertainty, the crypto world finds itself having to navigate increasingly complex waters, with implications that could redefine long-term investment strategies.
Source: https://en.cryptonomist.ch/2025/02/04/the-tariffs-of-donald-trump-on-china-cause-xrp-and-dogecoin-to-plummet/