The crypto market is experiencing volatility amid global economic policies. The total crypto market capitalization has dropped 7.48%, reaching $2.91 trillion.
Trump’s Tariff Plan, And Its Impact
The catalyst behind this downturn traces back to U.S. President Donald Trump’s recent announcement regarding a 25% tariff on imports from Canada and Mexico. The broader financial markets have already felt the shockwaves, with the S&P 500 sliding 2.3% over the past five trading days and the Nasdaq Composite falling 4%.
How Low Can Top Cryptos Fall?
Analysts warn of further downside risks, particularly for major altcoins. Binance’s recent large-scale offloading has contributed to the fear of a prolonged market downturn. Analyst Capo has cautioned that Ethereum could dip into the $1,800-$2,100 range if it fails to maintain its crucial $2,381 support.
The Road to Recovery: This Is What Lies Ahead!
Despite the ongoing bearish sentiment, hope remains for a market recovery if Bitcoin holds its ground at $85,000 and institutional investors step in. However, persistent selling pressure and worsening macroeconomic conditions could lead to a consolidation phase.
While fear and uncertainty cloud the market, some analysts believe this correction could be a necessary shakeout before another leg up. If institutional interest picks up, an improvement in market conditions could be on the horizon.
