Cryptocurrencies Fall as Trump Tariffs Scare Off Interest in Risk Assets

Cryptocurrencies saw nearly $500 billion of value erased since Saturday's announcement that the US will impose tariffs on three of its biggest trading partners as soon as Tuesday, driving investors away from riskier assets. Bitcoin (BTC) was down about 4.1% in the past 24 hours, trading at $94,703 before the opening bell. Ethereum (ETH) decreased by 17% to trade at $2,578. The global crypto market cap fell 6.6% to $3.11 trillion, down from $3.62 trillion on Saturday morning. The CoinDesk Market Index declined 8% in the past 24 hours. US President Donald Trump on Saturday imposed 25% tariffs on imports from Mexico and Canada, and a 10% levy on products from China. The tariffs go into effect Tuesday. "Bitcoin and crypto markets are a good reflection of risk-on sentiment in the near term," Bernstein analysts wrote in a Monday morning note. "If tariffs mean stronger dollar, higher inflation and reduced prospects of rate cuts in the short term, it means lower global liquidity for risk-on assets."The 11 US-traded spot-price bitcoin exchange-traded funds last week added a net $559.8 million in new investments, according to data compiled by research platform SoSoValue. The nine spot-price ethereum funds had combined net outflows of $45.5 million. Investors will await the Job Openings and Labor Turnover Survey for December scheduled to be released Tuesday, followed by the ADP Employment report for January on Wednesday. The government's nonfarm payroll data for January is scheduled for Friday.