Crypto Market Turmoil Amid Trump's Tariff Woes

Investors, rattled by President Trump's tariffs, caused a sell-off in risk-sensitive currencies and cryptocurrencies. Bitcoin and Ether see significant drops. The focus now shifts to U.S. consumer inflation metrics and future Federal Reserve rate cuts as global economic uncertainty rises.

In a dramatic response to U.S. President Donald Trump's tariff announcements, investors unloaded risk-sensitive currencies and cryptocurrencies on Friday, leading to a notable market downturn. Trump's proposed tariffs include a 25% levy on Mexican, Canadian, and European Union goods, alongside an additional 10% on Chinese imports, contradicting previous expectations for a postponement.

Bitcoin's value plummeted by 4.9%, dipping to its lowest since November, while Ether fell by 8.8% to a 13-month low. As cryptocurrency prices dropped, Bank of America indicated record outflows from crypto funds amid mounting concerns about the currency's viability as an investment vehicle.

Amid rising U.S. trade tensions and economic uncertainty, attention has turned to the U.S. Federal Reserve's inflation metrics. As investors anticipate potential interest rate cuts, the resulting economic instability has prompted market responses, affecting currencies worldwide, including the euro, yen, and the Australian and New Zealand dollars.

(With inputs from agencies.)