- Bitcoin dropped below $110K after Trump imposed a steep 50% tariff on Indian imports, sparking global market volatility.
- India’s rupee hit a new low against the U.S. dollar, adding pressure to risk assets like crypto.
- The broader crypto market fell as traders rushed into safer assets amid rising geopolitical and inflation fears.
Bitcoin has stumbled once again, slipping under the $110,000 mark, as global markets react to a new shock from Washington. President Donald Trump has announced a massive 50% tariff on most Indian imports—an aggressive move that rattled traders and sent money rushing into the U.S. dollar. The sudden shift in sentiment has put the entire crypto market on edge, sparking fast losses across major digital assets.
Why Trump Hit India With Tariffs
The tariffs didn’t come out of thin air. The Trump administration has been warning for months about countries continuing to buy discounted Russian oil, accusing them of indirectly financing the war in Ukraine. India’s purchases finally triggered the crackdown.
Earlier this month, the U.S. had already imposed a 25% tariff on Indian goods. But with Trump’s latest announcement, that rate has now doubled. For Indian exporters, the shock puts them among the hardest-hit globally, right alongside Brazilian suppliers already facing steep duties on exports to the U.S.
The move also adds to a growing list of tariff hikes Trump has rolled out since returning to office in January—policies that have strained relations with U.S. allies and fueled worries of global inflation.
Economic Fallout Hits Fast
The reaction from financial markets was immediate. India’s rupee tumbled to a new all-time low against the U.S. dollar, further boosting demand for safer assets. This dollar strength creates a squeeze on riskier markets like crypto, where liquidity dries up as traders dump positions to chase stability.
Global supply chains are expected to take another hit, too. Indian officials wasted no time criticizing the move, calling it disruptive and unnecessary.
Crypto Market Feels the Pain
For Bitcoin and friends, the fallout came quickly. Within hours, BTC slid by 2.8%, dropping under the critical $110,000 level early Friday morning. Other leading coins, including Ethereum and Solana, followed with sharp losses of their own.
Investors are now weighing not only inflation data and interest rates but also this new layer of geopolitical risk that’s beginning to creep into digital assets. In times like this, crypto often trades more like any other risk-on asset—sensitive to headlines, fragile against macro shocks, and vulnerable to sudden sell-offs.
