The cryptocurrency market experienced a sharp decline linked to recent US trade actions. Major cryptocurrencies like Bitcoin and Ether showed significant drops.
Decline of Major Cryptocurrencies
In Asia, Bitcoin dropped 11%, falling below $91,000. Ether fell nearly 20%, trading at $2,500, while Solana decreased by 13%. XRP experienced the largest drop, down 28%, trading at $2.
Market Position Liquidation
CoinGlass data revealed that around $200 billion in long positions were liquidated in just 12 hours, including about $150 billion in Ether and $50 million in Bitcoin.
Reaction to US Trade Policies
The market correction is linked to a trade war initiated by US President Donald Trump, who imposed 25% tariffs on Canada and Mexico. Many analysts are doubtful about the advantages of these tariffs. An editorial from the Wall Street Journal referred to it as the 'Dumbest Trade War in History.' The European Union has also stated that it will respond strongly to any tariffs affecting its member states. A spokesperson for the EU mentioned that tariffs cause unnecessary economic disruption and inflation, harming all parties involved.
Interestingly, the UK appears to be the only country receiving a break from these tariffs. The impact of US trade policy on the global market and cryptocurrencies continues to spark lively discussions.
