The cryptocurrency market experiences sharp price declines with the introduction of new tariffs by the Trump administration. Bitcoin and Ether see significant losses.
Impact of Tariffs on Cryptocurrency Market
The Trump administration announced a 10% tariff on all countries starting April 5, with some countries, like China, facing higher rates. Following this news, Bitcoin dropped over 6% over the last 24 hours, trading around $77,883, while Ether fell by more than 12%, reaching $1,575. The total cryptocurrency market capitalization dropped over 8% to $2.5 trillion.
Stock Market and Its Consequences
Prices have somewhat rebounded since the initial drop, with Bitcoin recovering 1.4% to $78,500 and Ether climbing back to $1,594. However, the US stock market also opened down, with S&P 500 futures dropping nearly 4%, and Nasdaq and Dow Jones Industrial Average declining by over 8%.
Expert Criticism and Predictions
Charlie Sherry, head of finance at BTC Markets, noted that the current market conditions are due to low liquidity on weekends, which can lead to sharp price fluctuations. Meanwhile, Bill Ackman speculated that Trump might postpone the tariffs to negotiate solutions. He mentioned that the tariff decision was not intended to cause a market sell-off, but was necessary to address the financial situation in the US.
The situation in the cryptocurrency market remains tense, with the introduction of tariffs potentially exacerbating volatility issues. Experts continue to discuss the possible implications and predict further price fluctuations.
