Trump's tariff impact hits the crypto market, DOGE and PEPE lead the decline, safe-haven funds shift to gold

The cryptocurrency market has recently experienced a rebound, attracting many investors to re-enter. However, this upward trend came quickly and went just as fast. With Trump’s announcement of a 15% global tariff increase, market sentiment rapidly reversed, and crypto investors are facing a new round of tests.

Tariff Policies Trigger Reassessment of Risk Assets

Trump’s global tariff policy directly impacted the entire risk asset sector. Under this policy shock, the cryptocurrency market came under significant pressure. According to the latest data, BTC price dropped to $63.54K, down 6.41% in 24 hours; DOGE fell from its high to $0.09, down 9.88% in 24 hours; PEPE also performed poorly, with a 10.86% decline over 24 hours.

Changes in market expectations caused by policy are driving capital away from high-risk assets toward lower-risk options. As the most volatile among risk assets, the crypto market has become the primary target of adjustments. Investors who bought in at higher prices face rapid losses, while those who just saw profits are now trapped in losses.

Altcoins Under Heavy Pressure, MEME Coins Hit Hard

During this decline, MEME coins like DOGE and PEPE performed especially weakly. Compared to BTC’s decline, these altcoins fell more sharply, and capital outflows accelerated. This reflects a sharp decrease in risk appetite, with investors rushing to sell the riskiest assets.

MEME coins, with weaker fundamentals and limited risk resistance, are often the first to be abandoned during market volatility. The most heavily fallen MEME coins have become the market’s casualties, exposing their fragility in the face of macro risks.

Capital Flows to Safe-Haven Assets, Gold and Silver Continue to Strengthen

In stark contrast to the crypto decline, gold and silver performed strongly. Safe-haven funds flooded into these traditional assets amid increasing global policy uncertainties. Gold and silver prices hit new highs, reflecting investors’ risk-averse mindset when adjusting their portfolios.

This shift in capital flow is clear—when macroeconomic pressures mount, capital moves from high-risk crypto assets to more stable safe havens. The performance of the crypto market versus gold and silver illustrates a “clash of extremes,” revealing a profound change in current market sentiment.

How Crypto Investors Should Respond

In the context of ongoing macroeconomic negatives, large-scale bullish runs in crypto are unlikely in the short term. The most important thing now is risk management, not rushing to buy the dip. Investors are advised to adopt a cautious, wait-and-see approach, avoiding blindly chasing lows or panicking into quick stop-losses.

For long-term participants in the crypto space, it’s essential to recognize that such volatility is becoming normal. During periods of increased macro risks, it may be wiser to reduce crypto holdings in your overall asset allocation and increase exposure to safe-haven assets. Remember—when risks emerge, safety first.