The crypto market has taken a hit, with major coins losing value rapidly. Analysts attribute the situation to global market uncertainty and new U.S. trade policies.
Crypto Market Drop
The crypto market is experiencing a significant decline: XRP fell nearly 17% to $2.34, and Bitcoin dropped below $84,000. The total market value has decreased to $2.77 trillion, down 9.74% from the previous day. Ethereum lost 14.63%, Solana dropped 19%, and Cardano crashed 25%.
Trade Policy and Its Impact
Former U.S. President Donald Trump announced new tariffs on Canadian, Mexican, and Chinese goods, causing uncertainty in the markets. The tariffs are set at 25% for Canadian and Mexican goods and 20% for Chinese goods. Canada retaliated with a 25% tariff on U.S. goods.
Market Reactions in Stocks and Crypto
U.S. markets reacted with declines: the Dow Jones fell 650 points (1.5%), the Nasdaq nearly 500 points (2.64%), and the S&P 500 lost 1.76%. In the crypto sector, over $800 million in leveraged trades were liquidated. Shares of crypto companies also fell: Coinbase by 4.58%, Robinhood by 6.41%. Analysts predict Bitcoin may further drop below $80,000.
The crypto market situation remains tense. Analysts view the current developments as a consequence of global economic uncertainty and potential pressure from new trade barriers.
