XRP, Bitcoin Plummet. Why Trump Tariffs Are Dragging Down Cryptos. — Barrons.com

By George GloverBitcoin and XRP were among the assets tumbling on Monday. Crypto investors can blame President Donald Trump for their losses.Bitcoin, the world's largest token by total market capitalization, fell 2.5% to $95,344 in early trading, according to data from Kraken — it was trading above $105,000 Friday. XRP, another large-cap token that's used to settle and facilitate transactions on Ripple Labs' digital-payments platform, slumped 9.7% to $2.35, having traded above $3 Friday.The cryptos were plunging as the rapid escalation of Trump's trade war sparked a broad market selloff. Trump imposed 25% tariffs on Canada and Mexico and 10% levies on China on Saturday. Canada and Mexico have already said that they plan to retaliate against the 25% tariffs imposed by the president on Saturday, while China said it would lodge a complaint with the World Trade Organization.The drop in digital-asset prices is part of a broader pattern: while tokens soared after Trump won the presidential election on Nov. 5, they have been trading roughly in tandem with stocks since he took office last month.Bitcoin's "recent performance highlights growing sensitivity to global economic events," Bitget Research analyst Ryan Lee said. "The current reaction underscores how geopolitical tensions and policy decisions are increasingly shaping cryptocurrency market dynamics."Other cryptocurrencies were also sliding on Monday. Ethereum fell 12%, Solana dropped 3.7%, and Dogecoin — a so-called meme token that's been touted in the past by Trump ally Elon Musk — tumbled 7.9% to less than 25 cents.Write to George Glover at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.