Bitcoin's price peaked weekly but then plummeted following new US tariffs, affecting altcoin volatility.
$6,000 Bitcoin Drop
Over the weekend, Bitcoin traded sluggishly without breaching $84,000, falling to $81,000 on Sunday evening. However, it rose to $84,000 again. By Tuesday, Bitcoin experienced fluctuations between $82,400 and $85,500. A quick dip to $81,200 occurred on Bitstamp, followed by a rebound to $88,500. The introduction of new US tariffs then led to a rapid decline to $82,000. The cryptocurrency has since slightly recovered, currently above $83,000, with a market cap of $1.650 trillion.
Altcoins Turn Red
Following Bitcoin's downturn, many altcoins also declined in value. Notably, Toncoin, Avalanche, and Solana fell by 6% daily, while ETH, XRP, and ADA faced minor losses. Major decliners include HYPE (-10%), CRO (-11%), and PI (-7.5%). The overall market cap has shrunk by $140 billion, now standing at $2.765 trillion.
Market Implications
The resultant volatility led to $500 million in losses for traders, with almost 160,000 accounts affected. These developments underscore the risks of high leverage and unstable market conditions.
The introduction of new US tariffs drastically shifted market sentiment, leading to significant sell-offs and heightened price volatility, advising investors to exercise caution during this period.
