US President Donald Trump’s trade wars have triggered a sharp downturn in the crypto market. Bitcoin and Ethereum both dropped nearly 10% in the last 24 hours, with market losses nearing $1 trillion.
Major Cryptocurrencies Decline
Bitcoin and Ethereum have been hit hard by the strengthened trade limits imposed by the US. Bitcoin tumbled over 8% to $78,400, its lowest since November. Ethereum also crashed to $2,082, erasing all post-election gains. The price changes in Bitcoin and Ethereum reflect a decline in investor confidence in the crypto market.
Crypto Market Approaches $1 Trillion Loss
The total capitalization of the crypto market has shrunk by $1 trillion over the past two months. The main cause has been investor fears over new US tariffs. In the last 24 hours, over 227,000 traders have faced liquidation in the market.
Optimism Fades: Bitcoin and Trump
Investors were hopeful for a crypto-friendly stance from Trump. However, potential new tariffs and the lack of concrete action to support the crypto market have intensified panic, leading to a drop in popularity for both Bitcoin and the Trump-related cryptocurrency.
The recent events in the crypto market highlight its high volatility and dependence on macroeconomic factors, including political decisions of major countries.
