Recent tariff policies implemented by the U.S. government have had a significant impact on Bitcoin holdings, leading to a substantial market downturn. A 13% decline in Bitcoin’s value occurred shortly after President Trump announced the creation of a Strategic Bitcoin Reserve. This dip is primarily attributed to escalating trade tensions and new tariffs imposed across various markets. These economic policies are causing ripples throughout the crypto landscape, with investors seeking refuge from uncertainty. The U.S. government’s Bitcoin reserve has also been significantly impacted by these tariffs. 10% tariffs on imports have been introduced, increasing to a staggering 104% under threat of further escalation and a potential impact on Chinese goods. 15% drop in the total cryptocurrency market capitalization was recorded following this announcement, showing the extent of volatility caused by these policies. This decline demonstrates the vulnerability of cryptocurrencies like Bitcoin to wider economic turbulence. The global stock market is also experiencing a significant downturn, with a 20% decrease observed in the S&P 500 index. Notably, World Liberty Financial’s assets linked to the Trump family have seen a dramatic drop of 49% since their acquisition, further emphasizing the negative consequences tariffs can have on related cryptocurrencies. These changes offer a stark reminder of the complex relationship between global economic policies, trade disputes and how they impact both digital and traditional markets.