Bitcoin, Ethereum and Altcoins Crash as Global Trade War Fears Spark Massive Sell-Off
Cryptocurrency prices have been in a sharp decline lately, driven by global trade war fears sparked by US President Donald Trump’s trade tariffs on select countries. Investors, anxious about potential impacts on growth, earnings, and inflation, are quickly moving away from risky assets like crypto.
The crypto market saw massive losses, with Bitcoin (BTC) plunging below $100,000 and leading the charge in market corrections. According to the CoinDCX Research Team, Bitcoin price drop has been compounded by significant sell-offs in altcoins, including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE).
Crypto Market Crumbles Amid Global Tariff Concerns
Trump’s decision to impose 25% tariffs on goods from Canada and Mexico, along with 10% on Chinese goods, has rattled investors globally. The announcement led to a drastic shift in investor sentiment, with $500 billion wiped off the market, leaving the total cryptocurrency market capitalization struggling to maintain the $3 trillion mark.
Data from CoinMarketCap shows the total market cap has fallen nearly 11% in just one day, while the total 24-hour crypto trading volume surged by a staggering 175% to reach $291.48 billion. Bitcoin, the largest crypto asset, plunged more than 6.35% to trade below $93,500, hitting a low of $91,250 in the past 24 hours. Bitcoin’s total market cap has slipped to below $1.85 trillion, representing a 15% drop from its all-time high of $109,114.88 just a couple of weeks ago.
Tariffs Lead to Massive Liquidations and Market Bleeding Red
The global sell-off continued as altcoins suffered steep price drops, with several prominent tokens, such as Ethereum (ETH), XRP, and Solana (SOL), seeing significant losses. The Pi42 CEO, Avinash Shekhar, commented on the crypto market’s vulnerability, explaining that the $2 billion in liquidations due to these market shifts highlight how crypto assets remain highly sensitive to global policy changes. As Bitcoin’s dominance in the crypto market spiked to 61.5%, this signals the market’s preference for safer assets within the crypto ecosystem.
Among the top-10 cryptocurrencies, Ethereum experienced a dramatic 20% decline, with its market cap slipping below the $300 billion mark. Other notable losses include Cardano (ADA), down 28%, and XRP, which along with Dogecoin (DOGE), dropped 25%, erasing a quarter of their respective values. Other altcoins like BNB and Solana also faced a sharp 16% and 10% decrease, respectively.
Bitcoin’s Technical Outlook: Consolidation and Potential for Recovery
Bitcoin is currently consolidating in the range between $91,200 and $94,800, with short-term pullbacks possible as market conditions remain volatile. Edul Patel, CEO of Mudrex, noted that while a short-term correction is likely, a prolonged trade tariff war could strengthen Bitcoin in the long run, especially as the US dollar weakens.
Patel emphasized that the reactions from other nations, particularly the UK and BRICS countries, would play a crucial role in determining the volatility of the market moving forward. In the worst-case scenario, Bitcoin might fall to $89,000 before seeing any recovery, but as the market adjusts to the new geopolitical landscape, there is potential for Bitcoin to rebound.
Investors and traders alike are closely monitoring developments on the global stage, including the broader economic impact of these tariffs. With ongoing uncertainty surrounding the international trade situation, cryptocurrencies will likely continue to face heightened volatility, pushing many investors to reassess their positions in the market.
As the situation unfolds, crypto enthusiasts should remain cautious and consider the potential long-term implications of global policies on their digital asset investments.
