Ethereum and other altcoins experienced a significant drop following U.S. President Donald Trump's threat to impose new tariffs on the European Union and Apple. Ethereum fell to approximately $2,550, a decrease of 4.1% within the day, while XRP and Dogecoin also witnessed declines of around 3.6% and 1.1% respectively. The proposed 50% tariffs could impact trade significantly and have dimmed the optimistic sentiment that prevailed in the markets previously. Zach Pandl from Grayscale indicated that such a trade war would push Bitcoin adoption in the medium term, despite Bitcoin also retreating to around $108,500 from its peak of $111,800. Meanwhile, gold prices surged as Treasury yields dropped, indicating a shift toward safer assets amidst rising economic uncertainties. Overall, the trade threats from the Trump administration have shifted market dynamics and increased tensions, particularly affecting riskier assets such as altcoins.

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