In the past 24 hours, the crypto market experienced significant volatility, leading to substantial position liquidations. The market cap dropped 2% to $2.68 trillion during Thursday's trading sessions. Long position traders were particularly affected.
Trade Tensions from U.S. Tariffs and Inflation Fears
Trade tensions heightened after U.S. President Donald Trump imposed 10% tariffs on imports. These measures negatively impacted European countries and BRICS nations. Inflation is predicted to rise to 5% due to the new tariffs.
Heavy Selloff in the Stock Market
The mainstream adoption of crypto assets by institutional and retail investors has increased their correlation with the stock market. In the past 24 hours, S&P 500 futures lost around $2 trillion in 15 minutes following the tariff announcement.
Technical Fears
Amid increasing correlation, the leading cryptocurrency Bitcoin (BTC) formed a rising wedge, causing an anticipated correction. Bitcoin's price was rejected above $87k, signaling a market correction, led by Ethereum (ETH).
The crypto market continues to experience heightened volatility driven by macroeconomic factors and technical indicators. Trade tariffs and inflation concerns also significantly impact price dynamics.
