Donald Trump's introduction of new tariffs triggered a sharp downturn in the cryptocurrency market, sparking debates over the causes of this crash.
Crypto Market Reaction to Trump's Tariffs
Following Donald Trump's tariff introduction, the crypto market lost nearly $500 billion. This sparked debates on whether the fall was solely due to tariffs or if the market was already overheated.
Signs of Market Overheating
Analysts argue that the market was already showing numerous 'top signals', including: Trump's launch of a memecoin; increased activity in crypto apps; Bitcoin reaching consecutive all-time highs.
Long-term Outlook
The market is in a volatile phase with potential long-term bearish trends if geopolitical and macroeconomic conditions worsen. Traders are watching key support levels for Bitcoin and Ethereum.
Despite increased volatility, many of the current market shifts can be attributed to both the tariffs and internal overheats.
