In 2025, tariff uncertainty has weighed heavily on the crypto market. Since February, when U.S. tariffs on Canada, Mexico, and China were announced, cryptos across the board have taken a beating, with some major cryptocurrencies down 20% or more.
And now comes "Liberation Day" on April 2, which is when reciprocal tariffs on nations around the world are expected to go into effect. As might be expected, the crypto market is bracing for impact. So how will the world's three largest cryptocurrencies -- Bitcoin (BTC 0.88%), Ethereum (ETH 1.65%), and XRP (XRP 1.88%) -- be affected?
Bitcoin
In theory, tariffs on, say, wine or automobiles should have little to no impact on Bitcoin. After all, it's not like nations are using Bitcoin to pay for these purchases. Moreover, Bitcoin is a global digital currency and does not belong to any sovereign nation.
The original thinking, in fact, was that Bitcoin might actually benefit from the tariffs. If investors began to view Bitcoin as a true haven asset, completely insulated from the chaos of the traditional financial markets, they might ramp up their purchases.
Image source: Getty Images.
But here's the thing: there's nothing the market likes less than uncertainty. It's one thing to impose tariffs decisively. But it's another thing entirely to announce tariffs, then cancel them, then adjust them, then add new ones, then retaliate when other nations announce their own tariffs, then back off, then call for a pause, and then strike back with new tariffs.
Quite frankly, it all seems a bit chaotic. And that's forcing investors to back away from assets such as Bitcoin. Buying Bitcoin is simply too risky right now because nobody really knows what's going to happen next.
CRYPTO: BTC
Key Data Points
In short, the crypto market is suffering from fear, uncertainty, and doubt (FUD) right now, and that's not good for Bitcoin. Since Feb. 1, Bitcoin is down 10%. That shouldn't be happening, given how much effort President Donald Trump has put into becoming a pro-Bitcoin president. However, investors shouldn't expect much to change with Bitcoin until there is some real clarity on what's happening with tariffs.
Ethereum
If you think Bitcoin has taken a beatdown as a result of tariffs, just look at what is happening with Ethereum. It's down 20% since Feb. 1, and shows no signs of rebounding anytime soon.
CRYPTO: ETH
Key Data Points
So, why has Ethereum been hit harder than Bitcoin? In many ways, it's due to the fact that Ethereum is both a digital currency and a blockchain ecosystem. Ethereum is the base layer for everything that can be built using blockchain technology, including decentralized exchanges and Web3 applications.
As a result of ongoing uncertainty, tariffs are putting the entire Ethereum blockchain ecosystem at risk. It might sound simplistic, but blockchain projects won't get funded, and builders won't build if there's uncertainty. And that puts Ethereum's future growth very much in doubt.
The longer the tariff drama drags on, the harder Ethereum will continue to get hit. That's really a shame because the Trump administration has made Ethereum a centerpiece of its future plans for decentralized finance (DeFi), and members of the Trump inner circle -- including Trump himself -- have publicly stated their support for Ethereum.
XRP
Of the three biggest cryptocurrencies, XRP has been the most resistant to the impact of tariffs. Since Feb. 1, it is actually up a modest 2%. You can view this in one of two ways.
CRYPTO: XRP
Key Data Points
If you're a glass-half-full type of person, you'll say that XRP's role in powering cross-border payments using the XRP blockchain is tariff-proof. After all, countries will continue to move money around the world. As they find other nations to buy their goods, they will need the XRP blockchain payment network to make that happen.
If you're a glass-half-empty type of person, though, you'll simply say that all of XRP's gains have come from the lifting of regulatory uncertainty. In March, the Securities and Exchange Commission finally dropped its long-running case against Ripple, the company behind the XRP token.
In many ways, the crypto market had been pricing that in since November, when Trump was elected on a campaign platform that promised to end the SEC's war on crypto. So, it's uncertain just how much more of a lift XRP will get now that the Ripple case is finally settled.
What to expect after April 2?
If you're a crypto investor, you need to circle the date April 2 on your calendar. What's announced on that date by the Trump White House as part of its Liberation Day tariff plans could impact the fate of crypto for the next few months, if not the next few years.
Expect much more volatility in coming months, along with a tightening of the correlation between the crypto market and the equity market. That has been the trend thus far in 2025, and it is likely to continue for the foreseeable future.
