Crypto Majors Zoomed as Much as 20%, Before Reversing, in the Past 24 Hours

XRP, dogecoin (DOGE), Solana's SOL, and Cardano's ADA are up nearly 3%. Bitcoin (BTC) and ether (ETH) are nearly 4% higher.

Major cryptocurrencies experienced gains of up to 20% within 24 hours on Tuesday, before reversing these gains as China announced retaliatory tariffs on the U.S. A buy-the-dip strategy following Monday's $2.2 billion crypto liquidation event had proven profitable for some risk-takers.XRP, dogecoin (DOGE), Solana's SOL and Cardano's ADA were up nearly 3%. Bitcoin (BTC) and ether (ETH) were nearly 4% higher.

The bump was short-lived, however, as the deadline passed for the U.S. to impose additional tariffs on China without an agreement. The move prompted traders to pull back during the Asian morning hours.

"The U.S.-China tariff conflict could decrease the appetite for risk assets and further impact the positive sentiment that has been fueling a bull market in the crypto industry over the past year," HashKey Global Managing Director Ben El-Baz told CoinDesk in a Telegram message. "The damage from the tariffs could still be made temporary if more crypto-friendly policies in the U.S. are set in motion," El-Baz added.

Traders remained mixed on the long-term impact of China's retaliatory decisions, with markets hinging on the chance of a reversal or a prolonged drawdown if further actions against the country materialize under Trump.

"Despite more people considering bitcoin as digital gold, it still largely trades like a risk asset," Prestro Research Research Analyst Min Jung told CoinDesk in a Telegram chat. "As a result, China's retaliatory 10% tariff on the U.S. is pressuring crypto, much like other global risk assets such as equities."

"While today's initial reaction may have been an overreaction, heightened volatility is likely to persist as markets digest further developments. The key question now is whether this move is primarily a negotiation tactic that could eventually be reversed—similar to what we saw with Canada and Mexico—or if it signals the start of a prolonged trade conflict, given that China has been a central focus of Trump's rhetoric," Jung said.

Donald Trump's decision to impose tariffs on imports from Canada, Mexico, and China led to a steep drop in bitcoin and broader equity markets on Monday, shifting investors' attention from Trump's pro-crypto stance to the immediate economic repercussions.

Monday's major liquidation event offered a "buy-the-dip" opportunity to traders, as a CoinDesk analysis noted, with the tariff announcements sparking interest in dollar-backed stablecoins as a hedge against economic uncertainty and currency volatility.