Dogecoin, XRP Sink 7% as Trump Tariffs Threats Dent Markets; Bitcoin Options Expiry Looms
**Global Markets Slump as Trump Threatens New Tariffs; Cryptocurrencies and Stocks React to Economic Uncertainty**
The global financial markets have been weighed down since Thursday following fresh warnings from former U.S. President Donald Trump about imposing harsher tariffs on Canada and the European Union. Trump stated that if the two economic blocs collude or enact policies detrimental to U.S. economic interests, his administration would respond with deeper tariffs.
Canadian Prime Minister Mark Carney responded late Thursday, expressing his government’s intention to accelerate trade deals with other nations, citing the United States as “no longer a reliable partner.”
### Cryptocurrency Market Volatility Intensifies
Major cryptocurrencies including Dogecoin (DOGE), Ether (ETH), and XRP (XRP) experienced losses exceeding 5% during early Asian trading hours on Friday. In contrast, Toncoin’s (TON) price surged by approximately 5%, making it the sole top-20 cryptocurrency by market capitalization to exhibit positive performance within the past 24 hours.
According to data from CoinDesk’s broad-based CoinDesk 20 (CD20) index, the average decline for crypto majors was around 4.5%, with Dogecoin leading the losses at 7%. Analysts attribute the downturn to profit-taking following a relief rally earlier in the week and caution ahead of the U.S. Personal Consumption Expenditure (PCE) report scheduled for release later on Friday.
### Bitcoin Options Set to Expire Amid Market Uncertainty
Over $12.2 billion worth of Bitcoin (BTC) options are set to expire, with a maximum pain point at $85,000. Analysts at Singapore-based QCP Capital noted a lack of near-term optimism, with open interest (OI) gradually declining amid sideways trading.
“With the PCE Index data due tomorrow, we believe any short-term upside remains capped as markets wait for clarity from Trump’s next move in this escalating trade war,” QCP Capital stated in a Telegram broadcast.
The PCE index, released monthly, measures inflation (or deflation) across a wide array of consumer expenses and is known to influence Federal Reserve interest rate decisions. Higher PCE readings suggest rising inflation, which could prompt interest rate hikes aimed at cooling the economy. Such measures tend to reduce investors’ risk appetite, pressuring Bitcoin prices as capital shifts toward safer assets.
Conversely, lower PCE figures indicate moderate inflation, potentially leading to rate cuts or steady policy. This could boost liquidity and provide upward momentum for Bitcoin as a speculative asset or inflation hedge.
### Broader Economic Concerns Weighing on Markets
The heightened sensitivity of global markets to U.S. monetary policies and the ongoing trade tensions may further discourage capital allocation to Bitcoin as a hedge against economic instability, according to experts.
“In light of the prolonged trade war and potential inflationary pressures, capital allocation to Bitcoin as a hedge against economic instability might be reduced,” warned Innokenty Isers, Chief Executive Officer at Paybis, in a Telegram message to CoinDesk.
He added, “Given Bitcoin’s higher volatility compared to other assets, risk-averse investors may increasingly seek alternative inflation hedges.”
### Gold Surges While Stocks Falter
Amid escalating tensions and economic uncertainty, gold continued its impressive climb, reaching fresh highs above $3,109 during Asian morning hours on Friday. The precious metal has been on a consistent upward trajectory since early March, offering a safe haven for investors.
Meanwhile, global equities struggled. Bloomberg reported that the MSCI World Index experienced its longest losing streak in a month, while a regional gauge of Asian equities faced its steepest drop since February 28.
### Outlook Ahead
With the U.S. Personal Consumption Expenditure data expected to be released later today, markets are bracing for heightened volatility. Analysts anticipate that Bitcoin’s price reaction will hinge on how the data influences Federal Reserve expectations. Investors are also closely monitoring the ongoing tariff rhetoric between the U.S., Canada, and the European Union, as economic instability continues to steer capital flows.
*Shaurya Malwa is the Co-Leader of CoinDesk's tokens and data team in Asia, focusing on crypto derivatives, DeFi, market microstructure, and protocol analysis.*