Global political and economic events typically shape the bitcoin market; recent escalations in the US-China trade war have resulted in notable market volatility. Rising tensions force investors to monitor closely how the trade conflict can affect the world economy and the bitcoin market.
Tariffs, particularly if they exceed 125%, can cause more market instability and result in falls in altcoins. Investors should consider lowering their particular altcoin exposure. Here, we discuss four altcoins that can suffer as the trade war gets more intense.
XRP and Trade Tensions
Long recognized as a reliable digital currency, Ripple’s XRP is frequently used to enable overseas money transfers. XRP is, nevertheless, equally sensitive to political and financial changes, especially those involving international trade agreements. Particularly in big markets where volatility exists, the price swings of the cryptocurrencies in recent years have reflected changes in the economy.
As trade tensions between the US and China grew in early February 2025, Ripple’s XRP suffered greatly. China responded with tariffs on US goods, including agricultural products and energy resources, after the US imposed a 10% tariff on Chinese imports. XRP dropped 6.5% within a few days, from $0.85 to $0.79. A more general market sell-off in response to the growing tensions aggravated this decline.
Should the trade war get more severe, especially if tariffs rise above 125%, the XRP price might experience more negative pressure. XRP is considered a risky investment in the current geopolitical climate due to potential economic upheavals, reduced trade, and increased uncertainty in financial markets. Investors might consider selling their XRP assets before further escalation, as they are concerned about the trade war’s hazards.
Cardano Price Volatility
Cardano (ADA) has positioned itself as a strong contender in the altcoin space, offering innovative solutions for decentralized applications and smart contracts. However, like many other altcoins, Cardano is not immune to macroeconomic forces. Changes in investor sentiment, including geopolitical events like trade conflicts, often impact the price of ADA.
During the same period that Ripple experienced a decline, Cardano also suffered a drop. As the US-China trade war flared up in early 2025, ADA saw a 5.8% decrease, dropping from $0.55 to $0.52 in just a few days. This decline was largely attributed to fears that the trade war would lead to broader market instability.
Given that ADA has demonstrated sensitivity to global economic shifts, investors may want to consider selling it ahead of a possible extension of the trade war. A prolonged trade conflict could result in more volatility, and Cardano’s price could face further downward pressure as market conditions worsen.
Solana’s Economic Struggles
Rising among the best challengers in the blockchain scene, Solana (SOL) is well-known for its quick transaction rates and lower cost than Ethereum. Solana’s market performance depends on the larger economic climate, even if it has technological potential.
Tensions between the US and China grew in early February 2000. Investors started withdrawing from riskier assets, including Solana, as the trade war threatened to seep into other spheres of the world economy. Over a week, SOL plummeted from $30 to $28 since market uncertainty greatly affected its pricing.
Solana might remain under negative pressure even if tariffs surpass 125% and the trade battle escalates. Her exposure to global economic changes makes her a riskier asset in the near term, even if the project’s long-term promise is still great. Risk-averse investors should consider selling their SOL interests to guard against possible losses as the trade conflict becomes more severe.
Ethereum Market Volatility
For distributed applications and smart contracts, Ethereum (ETH) is the second-largest cryptocurrency market and plays a prominent role in the crypto ecosystem. Ethereum is quite susceptible to market-wide sell-offs and global economic upheavals. The larger crypto market often aligns with Ethereum, which can magnify gains and losses for alternative currencies such as ADA, XRP, and Solana.
Ethereum dropped in value rapidly in February 2025, losing around 25% of its market price in a few days. As word of growing trade tensions spread through the financial markets, Ethereum’s price dropped from about $1,750 to $1,300. This decline reflected the general market response to the trade war and investor worries about its long-term consequences on the world economy.
Considering Ethereum’s sensitivity to world market dynamics, investors should consider selling ETH before the trade war causes more disturbances. Ethereum might experience additional negative movement, with more tariffs on the horizon, particularly if the trade war surpasses the 125% tariff level. Short-term investors might reduce Ethereum holdings to safeguard against potential market volatility.
Final thoughts
As the US-China trade conflict develops, one cannot undervalue the effects on world markets, including cryptocurrencies. Given the likelihood of tariffs exceeding 125%, there is a greater chance of further market disruption.
Should the trade war intensify, altcoins like Ethereum, Cardano, Solana, and Ripple would face significant difficulties. Investors in these assets should evaluate their exposure closely and consider lowering their holdings to help reduce the risks associated with possible market volatility.
Maintaining knowledge and working with financial advisers will enable investors in a complicated and fast-changing market to make the best decisions for their portfolios. Despite the short-term geopolitical uncertainty, prudent actions help investors protect their assets and set themselves up for long-term success.
