Ether, Memecoins Plunge as Traders Dump Risk After Trump Tariffs

Small-cap crypto index on pace for worst rout since May 2022
Trump’s tariffs have added to uncertainty in crypto markets

Retaliatory Tariffs on US Would Have Severe Impact: Smart

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By Suvashree Ghosh, Richard Henderson, and Sidhartha Shukla

February 2, 2025 at 10:20 PM UTC

Updated on

February 3, 2025 at 1:54 PM UTC

This article is for subscribers only.

Donald Trump’s moves to impose tariffs on major US trading partners sparked a selloff in cryptocurrencies, with an index of smaller tokens on track for the steepest two-day rout in almost three years.

The MVIS CryptoCompare Small-Cap index slumped as much as 21% on Monday, adding to the previous day’s 11% drop. Ether, the second-biggest cryptocurrency, briefly plunged as much as 27% before paring losses. Bitcoin held up better and was trading down about 2% to around $95,145 as of 8:51 a.m. in New York.