Here’s Why The Bitcoin, Dogecoin, And XRP Price Are Crashing This Week

The Bitcoin, Dogecoin, and XRP prices have crashed this week, recording massive declines, led by BTC, which dropped to new 2026 lows. This decline has been mainly due to macro fundamentals, including the Trump tariffs, which are causing market uncertainty. 

Why The Bitcoin, Dogecoin, And XRP Prices Are Crashing

The Bitcoin, Dogecoin, and XRP prices are down this week and are now suffering year-to-date (YTD) losses, according to CoinMarketCap. BTC dropped below $82,000 yesterday, marking a new yearly low for the leading crypto. One reason for this decline remains the Trump tariffs, which have heightened market uncertainty. 

Earlier this week, the U.S. president announced in a Truth Social post that he was increasing tariffs on South Korea from 15% to 25%. This came just days after he threatened to increase tariffs on Canada to 100% if they made a trade deal with China. It is worth noting that JPMorgan analysts, in a recent note, explained that the Trump tariffs, especially on China, are affecting dollar liquidity, which they indicated is already contributing to the decline in the prices of Bitcoin, Dogecoin, and XRP. 

These analysts explained that China has had to adapt to the Trump tariff pressure and, in doing so, is adversely affecting the dollar liquidity cycle. Notably, China has been selling off U.S. treasuries and buying more gold. Amid this development, the U.S. dollar has weakened, which will typically be bullish for BTC. 

However, these analysts stated that investors currently treat Bitcoin as a liquidity-sensitive risk asset rather than as a hedge against the USD weakness. Gold has instead taken the spotlight in this regard, reaching new highs as investors move to it as a safe haven. Notably, the Bitcoin, Dogecoin, and XRP prices also dropped yesterday as gold crashed over 6% amid a sudden sell-off. 

Meanwhile, rising tensions between the U.S. and Iran are also contributing to the decline in the Bitcoin, Dogecoin, and XRP prices. Earlier this week, Trump threatened strikes on Iran that would be far worse than the strikes last year. According to a Reuters report, the U.S. president is already weighing options against Iran, which could include targeted strikes on security forces and leaders. Iran has also vowed to respond like never before if pushed by the U.S.

A Hawkish Fed Is Also Sparking Bearish Sentiment 

The Fed also appears to be hawkish at the moment, which has sparked a bearish sentiment and contributed to the decline in Bitcoin, Dogecoin, and XRP prices. The Fed held interest rates at the FOMC meeting earlier this week, while signaling that they are in no hurry to make more rate cuts. This could mark the beginning of a rate-pause cycle, which could further constrain liquidity. 

Concerns about the Fed’s hawkish pivot have also worsened following reports that former Fed Governor Kevin Warsh is likely to become the next Fed Chair. Warsh is regarded as one of the more hawkish candidates for Fed chair, as he has advocated for a smaller Federal Reserve balance sheet. It also remains unclear where he stands on rate cuts, unlike the other candidates, who have declared support for lower interest rates.