Crypto Market Takes Hit Amid Trump’s Tariff Announcement, EOS Surges
Crypto market capitalization drops 8%, with Bitcoin falling to $76,700. EOS shines with a 20% gain after rebranding, while Ethereum’s Pectra upgrade aims to boost scalability and security.
Global markets experienced significant turbulence over the weekend, with cryptoassets finally succumbing to the broader sell-off that followed Donald Trump’s ‘Liberation Day’ tariff announcement. Total crypto market capitalisation dropped to $2.4 trillion, marking an 8% decline on the week. Bitcoin fell 6.7% to $76,700 – a level last seen when Trump was elected president.
Simon Peters, Crypto Analyst at eToro, said: "The latest non-farm payroll data surprised the market, showing 228,000 new jobs created in March, well above the expected 135,000. At the same time, the unemployment rate rose slightly to 4.2% from 4.1%. As a result, traders are now pricing in a 50% probability of the Federal Reserve cutting interest rates at its May meeting."
"Although tariffs have dominated headlines, financial conditions in the U.S. have quietly started loosening. The U.S. dollar and Treasury yields have retreated significantly since Trump took office, and the Federal Reserve is expected to slow its quantitative tightening. Historically, cryptoassets tend to perform well in such environments."
Peters added: "As the dust settles around tariffs and we get more signs of loosening conditions, markets may find a bottom and stage another leg higher."
Upcoming This Week
All eyes will be on upcoming inflation data from the U.S., particularly the Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Markets are hoping for lower-than-expected readings to increase the likelihood of a Fed rate cut in May.
However, next month’s figures will be even more crucial as they will reflect the initial impact of Trump’s tariffs and whether they’ve started to push consumer prices higher.
Biggest Movers
EOS was the standout performer, surging 20% this week amid enthusiasm over its rebranding to Vaulta and shift toward Web3 banking. Since the rebrand announcement on March 18, EOS has risen 45%, while Bitcoin has fallen 8% in the same period.
Discover more: eToro Market Movers
Ethereum Pectra Upgrade Slated for May 7
Ethereum developers have confirmed that the Pectra upgrade will go live on the mainnet on May 7. The upgrade aims to enhance scalability, improve network security, and increase the validator staking limit from 32 ETH to 2,048 ETH.
Despite these improvements, Ether has underperformed compared to rivals like Solana. Its market dominance is now at 7.5%—its lowest since January 2020. The Pectra upgrade could mark a turning point if it successfully renews investor confidence in Ethereum.
