# Cryptocurrency Market Trembles Amid Trump’s Trade Policy Confusion

The cryptocurrency market experienced significant volatility in March, impacted heavily by the erratic trade policies of U.S. President Donald Trump. As of April 1, Bitcoin has fallen 5% over the past week, while decentralized finance (DeFi) hacks have increased. The Solana (SOL) ecosystem witnessed a dramatic 99% decline in revenue due to a reduction in meme coin trading.

## Trump’s Trade Policy Turmoil Shakes Markets

According to Cointelegraph, President Trump implemented tariffs of up to 25% on products from Mexico, Canada, and China on March 4. This initial hard stance was followed by a series of delays and negotiations on tariffs concerning the automotive industry and products from Canada and Mexico, leading to policy confusion.

When China and the European Union (EU) announced retaliatory tariffs on March 10 and 12, both cryptocurrency and stock markets experienced substantial swings. Bitcoin briefly rebounded to $85,000 on March 24 before falling back to about $82,000.

President Trump’s erratic policy moves also impacted the portfolio of World Liberty Financial (WLFI), a firm in which the Trump family has investments. Altcoins such as Mint (MNT) and Tron (TRX) traded at lower prices compared to the start of the month. Investors are closely watching the upcoming “Liberty Day” announcement on April 2, where President Trump is expected to announce uniform tariffs on all countries imposing tariffs on U.S. products.

## States Pass Digital Asset Legislation

In March, Utah and Kentucky passed significant legislation concerning digital assets, including definitions, protections for miners, and cryptocurrency payment guidelines. Additionally, similar legislation has been introduced or advanced in 13 other states including Texas, Georgia, and Illinois.

Illinois is pursuing consumer protection and industry regulation laws, while Georgia aims to establish a Senate committee for studying digital assets and artificial intelligence (AI). Texas is pushing forward three bills: issuing oil-backed stablecoins, allowing public funds to invest in cryptocurrencies, and launching a blockchain pilot project by the Department of Information Resources.

## Solana Ecosystem Revenue Plummets

The meme coin market’s decline has directly impacted the Solana network. Revenues plummeted from $15 million on January 19 to $119,000 by the end of March, a 99% decrease. Decentralized exchange (DEX) trading volume also fell from $3.9 billion on March 2 to $782 million by month’s end. Messari analyst Sunny Shi commented, “The contraction in the meme coin economy could lead to a significant drop in ecosystem revenue.”

However, Synthetix founder Kain Warwick provided a positive outlook, noting, “The meme coin frenzy has positively contributed to the expansion of Solana’s infrastructure.”

## DeFi Hacks Amount to $22 Million in Losses

March saw four major hacking incidents with cumulative losses reaching $22 million. North Korea’s Lazarus Group, which had previously stolen $1.4 billion in the February Bybit hack, is suspected to be involved once again.

Blockchain security firm Lookonchain reported that hackers laundered most of their funds through the THORChain network. Cryptocurrency analyst ZachXBT warned, “DeFi remains vulnerable to hacks, and resolution without government intervention seems unlikely.” He criticized various protocols for relying on traffic generated by Lazarus while evading responsibility.

## Industry Events Persist Amid Price Decline

Despite the adverse market conditions, the crypto industry remained vibrant with six major cryptocurrency conferences held across Europe and North America in March. However, market prices continued to trend downward, with Ethereum dropping 18% over the month to $1,823.

Looking ahead to April, the industry braces for significant developments including President Trump’s comprehensive tariff implementation, the House Financial Services Committee’s review of stablecoin legislation, and the sentencing of Mango Markets hacker Avraham Eisenberg. The market remains on high alert.