The recent crypto rally fueled by the US strategic stockpile plan was short-lived, with bitcoin tumbling nearly 10 percent as global markets reeled from uncertainty over proposed US tariffs.

As of 5:00 p.m. Tuesday, bitcoin was trading at around $83,000 globally, down nearly 10 percent from the previous day, erasing $1.65 trillion in market value, according to CoinMarketCap. In South Korea, it was priced at approximately 126 million won ($86,300), carrying a 3 percent premium over global prices.

The pullback wiped out nearly all of bitcoin’s gains from the day before, which had surged following US President Donald Trump’s social media post reaffirming his push for a strategic crypto reserve.

"A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration," Trump wrote, adding, "We are making America great again."

The post marked his first public comment on the crypto reserve since issuing a January executive order on digital assets, which directed the president's working group on digital assets to explore the creation of a national digital asset stockpile.

In the same post, Trump listed five cryptocurrencies expected to be included in the reserve: bitcoin, ethereum, XRP, solana and cardano. His remarks ignited a sharp rally, sending bitcoin to an intraday high of $95,000, up 11 percent. Ethereum, the world’s second-largest cryptocurrency, gained 13 percent, while XRP and solana surged 34 percent and 24 percent, respectively. The comparatively lesser-known cardano saw a massive 70 percent jump.

However, market skepticism quickly emerged as Trump confirmed that a 25 percent tariff on Canada and Mexico, and an additional 10 percent tariff on China, would take effect as scheduled on Tuesday, intensifying uncertainty and reversing the crypto price surge.

Experts say that higher tariffs are fueling inflation concerns, leading traders to retreat from high-risk assets like cryptocurrencies.

"The global economy, excluding the US, has been slowing significantly, and inflation in this environment could lead to stagflation, further driving risk-off sentiment," Choi Seung-ho, an analyst at Seoul-based crypto research platform Xangle, said. "With institutional investors increasing their footprint in the crypto market, a deteriorating macroeconomic backdrop under stagflation is weighing on crypto prices, much like other risky assets."

Market watchers anticipate continued volatility in the market; as the US prepares to expand tariffs, the global trade crisis is expected to intensify. Trump also warned of imposing mutual tariffs beginning April.

"Trump's recent remarks were significant as they signaled his commitment to creating a 'reserve,' not merely stockpiling digital assets. Yet, the rally couldn’t overcome tariff risks," said Park Sang-hyun, an analyst at iM Securities. "For now, the crypto market is likely to remain volatile depending on the direction of tariff policies."

Choi echoed short-term turbulence expectations but projected easing volatility as policy uncertainties clear. "It all comes down to how swiftly Trump’s policies materialize and how long it takes the market to absorb them," he said.

"The real test will be whether bitcoin secures a new solid regulatory foundation and attracts sustained global investment," Choi added. "Over time, volatility should ease as Congress approves the reserve plan, concrete policies are implemented and global liquidity adjusts to tariff shifts."

The industry anticipates more market-moving commentary at the upcoming first-ever White House crypto roundtable. Trump plans to host the summit on Friday, bringing together key figures from the cryptocurrency industry and presidential working group members to discuss regulation and innovation.

By Choi Ji-won (jwc@heraldcorp.com)