Tariff Turmoil Sends Bitcoin and Ethereum Lower as Crypto Markets Face Mounting Pressure

Uncertainty surrounding US tariff policy is weighing on the crypto markets, with Bitcoin dropping four percent overnight. Ethereum is also suffering.

How tariff turmoil influences the price of Bitcoin

Bitcoin fell from $68,000 to around $65,500 overnight into Monday, a daily drop of almost 4 percent. Observers attribute the noticeable Bitcoin price decline to the back-and-forth regarding US tariffs. The Supreme Court declared the tariffs imposed by President Donald Trump “unlawful,” and Trump reacted angrily, intending to impose an additional 15 percent tariff on imports from around the world by executive order. Bitcoin is proving vulnerable in this situation.

Bitcoin ETFs closed the past trading week in negative territory. They have now experienced five consecutive weeks of capital outflows, totaling $3.8 billion. Will the new week bring a trend reversal?

Ethereum’s price is alfo affected

Ethereum is also being significantly impacted by fears of a disrupted global economy due to additional tariffs. ETH has fallen below the $1,900 mark, dropping five percent daily and marking a new low for 2026. Ethereum ETFs are also continuing their downward trend, with five consecutive weeks and a total capital outflow of approximately $1.3 billion.

At the close of the Ethereum conference in Denver, organizer John Paller concluded that ETH apps often fall short of their own aspirations. User-friendliness leaves much to be desired, Paller said. One example: Farcaster, intended as a Facebook competitor, is live in the Ethereum ecosystem, but remains a niche project.

How are altcoins performing

Today’s winner is PIPPIN, with a 30 percent gain. The project aims to combine meme coins and artificial intelligence within the Solana ecosystem. PIPPIN reached an all-time high of $0.75 a week ago; current prices are $0.67.

LayerZero (LZR) is the day’s biggest loser, with a daily drop of almost 10 percent, bringing the altcoin down to around $1.55. Nearly 3.3 percent of all LZR in the DeFi project were released from a selling lock over the weekend, and LayerZero is feeling the effects.

The sentiment barometer for the cryptocurrency market remains stuck in the “extreme fear” region, not a good omen for the new week.

From teh Cryptogindustry

The passage of the Clarity bill in the US, which aims to introduce practical regulations, could provide a positive boost to the crypto markets. However, banks sense competition and have so far resisted. Coinbase CEO Brian Armstrong nevertheless expects a breakthrough in negotiations in the near future, and Ripple CEO Brad Garlinghouse sees an 80 percent chance of a Clarity compromise in April.

In Germany, savings banks and cooperative banks are entering the cryptocurrency sector, reports the FAZ (paywall) . They plan to offer trading and custody of Bitcoin and Ethereum, while the broader field of altcoins will initially be excluded. The generally conservative savings banks and cooperative banks see their Bitcoin offerings as necessary to compete with online banks like Revolut and Trade Republic, the newspaper writes.

Artficial Intelligence and crypto

Peter Steinberger’s project Clawdbot, now called OpenClaw, has enabled next-generation AI agents. OpenClaw’s enormous success has already landed Steinberger a job at OpenAI (ChatGPT). Now, Steinberger is using the X to urge major AI companies not to hinder OpenClaw, but to see it as an opportunity. Apparently, some AI services are trying to prevent integration with OpenClaw.

The rampage in British Columbia, Canada, that left nine dead has had repercussions. Local media have discovered that the 18-year-old perpetrator had asked ChatGPT how to handle a firearm. This apparently came to the attention of ChatGPT monitors but was not reported to the authorities. Are AI services required to report suspected cases of criminal activity?

What will be important today

The EU will discuss how to deal with the new US tariffs. The plan was to adopt a long-negotiated tariff compromise in the European Parliament tomorrow, Tuesday. However, this is now in jeopardy because US President Trump has announced further tariffs – the situation appears deadlocked.

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(Featured image by Traxer via Unsplash)

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