Trump’s Tariffs Trigger Crypto Market Crash: Bitcoin Drops Below $100K

New tariffs from Donald Trump sparked a major crypto sell-off, with Bitcoin, Ether, and other digital assets plummeting as investors sought safer havens. The market volatility highlights the increasing link between global trade policies and cryptocurrency performance.

Trade War Fears Spark Widespread Crypto Market Sell-Off

Basically, Donald Trump announced new tariffs on imports from Canada, Mexico, and China. The source explained that this move sent shockwaves through the crypto market. Bitcoin’s value took a nosedive, dropping below $100,000 for the first time since early January. It even hit a low of $92,460 as investors rushed to sell off their holdings. The source indicated this sell-off reflected a broader fear of economic instability and a potential slowdown in global trade.

It wasn’t just Bitcoin either, according to the source. Ether also got hammered, suffering its biggest percentage drop in almost four years, plummeting by over 26% to around $2,135. Other cryptos like XRP, Solana and Dogecoin weren’t spared either. The source revealed that traders quickly adjusted their portfolios, trying to secure profits before things got even more volatile. This whole situation really showed how much geopolitical events can impact digital asset prices.

Global Trade Woes Lower Demand for Bitcoin and Other Cryptos

Now, why did these tariffs hit crypto so hard? Well, the source explained that they increased concerns about inflation and economic growth. Basically, with people worried about money and spending less, there’s less cash available to throw at risky assets like Bitcoin. Rising trade tensions also made the US dollar stronger, which means cryptos became more expensive for international buyers.

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The source also mentioned that the stock market, which is becoming more correlated with crypto, also played a role. Institutional investors who once saw Bitcoin as a safe haven against inflation started to reconsider their positions. Also, according to CoinGlass data, over $2 billion worth of Bitcoin got liquidated. The source revealed that a whopping $1.83 billion of that was from investors betting on Bitcoin going up. This really caught a lot of people off guard!

The source indicated that market experts are still figuring out what this all means for the long run. Some think a weaker dollar might eventually boost Bitcoin, but others are worried that inflation and economic instability will continue to put pressure on the market. One expert, Markus Thielen from 10X Research, noted how Bitcoin was actually doing well before these tariffs threw everything off course. He explained it broke key technical support levels which is not good news for crypto bulls.

Ryan Lee of Bitget Research stated that the way Bitcoin reacted shows just how sensitive it’s becoming to global events now. The source revealed that the crypto market is no longer isolated from what happens in broader financial markets. It seems like we need to keep our eyes peeled not just on tech news, but also on global trade policies moving forward if we want a better understanding of where crypto is headed!

Okay, so things got a bit wild in the crypto world today. Remember how we were talking about Bitcoin maybe hitting new highs? Well, scratch that for now.

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Source: Trumps Tariffs Trigger Crypto Market Crash | Tronweekly.com

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