Bitcoin and Ethereum dropped sharply after reversing their recent price increase since President Trump unveiled American cryptocurrency storage plans at the weekend. Digital asset investors moved their attention to major market trends and rising trade conflicts which prompted broad selling.

Over the past day the price of Ether dropped 14.7% down to $2,082 which marks its most affordable point since November 2023. Bitcoin lost one-tenth of its value and reached $83,704 trading price by writing time.

Trump’s Tariffs Spark Market Risk Aversion

Market sentiment shifted towards risk aversion when Trump mentioned tariffs and poor economic numbers showed up according to Presto Research head Peter Chung. In February the ISM PMI revealed weak hiring and new order results beneath 50 while prices increased sharply.

The Atlanta Fed suggests the US economy is currently in a recession because its GDPNow model forecasts a 2.8% decline in real GDP during Q1. The President Trump announced his decision to apply 25% tariffs to Canadian and Mexican imports which kicks in on Tuesday causing more market instability.

The United States government will add 10 percent tariffs to Chinese imports to form a total tax rate of 20 percent. People investing in the market reacted negatively when Trump doubled down on tariffs against Canada Mexico and China according to Chung.

In a market assessment Kevin Guo stated Trump”s latest tariff actions returned all gains achieved from the previous day when buyers boosted markets with strategic reserve support.

ETF Outflows Signal Weakening Crypto Market Confidence

The prevailing economic concerns for the United States market continue to affect digital coin prices according to Guo. Economic troubles will likely expand between trading countries who apply equal import taxes following the policy.

The crypto analyst Rachael Lucas agrees with these worries as Trump”s tariffs keep harming global finance markets which push down all investment assets. Lucas stated that market participants appeared worn out.

The market experienced a 600% gain over late 2022 before operating funding rates rose high alongside greed measurements and ETF funding flow reductions pushed the market towards its regular pullback phase.

New Exchange-Traded Fund (ETF) transactions confirm this point of view. The National Bitcoin Exchange Traded Funds witnessed $74.19 million less investment on Monday following $94.34 million in inflows on Friday according to SoSoValue. Spot Ethereum ETFs showed their eighth straight day of sales as investors withdrew $12.1 million from their funds on Monday.

The crypto market directions become uncertain as investors handle rising national and economic challenges. Traders need to watch Trump”s crypto summit and worldwide trade news to understand if crypto markets will recover or decline.