In the past 24 hours, major cryptocurrencies have shown significant gains, driven by a buy-the-dip strategy after a $2.2 billion market shift. However, China’s announcement of retaliatory tariffs changed the trajectory.
Cryptocurrency Growth and Its Causes
Major cryptocurrencies such as XRP, Dogecoin (DOGE), Solana (SOL), and Cardano (ADA) increased by nearly 3%. Bitcoin (BTC) and Ether (ETH) rose by 4%. This was due to a 'buy the dip' strategy following a sharp $2.2 billion market shift.
Impact of Chinese Tariffs on the Market
After China announced retaliatory tariffs on the U.S., the market pulled back. This happened as the deadline for new U.S. tariffs on China passed without resolution. The tariffs from China may reduce interest in risk assets, including cryptocurrencies.
Long-term Prospects and Expert Opinions
Traders are uncertain about the long-term effects of China's tariffs. Experts like Ben El-Baz from HashKey Global and Min Jung from Prestro Research believe that cryptocurrencies may continue to behave like risk assets despite their role as 'digital gold.'
The recent market events provided a 'buy-the-dip' opportunity, but efforts to stabilize trade between the U.S. and China continue to bring uncertainty and volatility.
