The cryptocurrency market experienced a significant drop on Monday, triggered by the latest tariff measures.
Sharp Fall in Cryptocurrencies
Bitcoin reached a three-week low at $94,476.18 and briefly dropped to $91,441.89. Ether also fell by 24%, reaching $2,494.33, marking its lowest since early September.
Impact of Trade Policies
The market's decline follows recent tariff impositions by US President Donald Trump, with announced 25% tariffs on imports from Mexico and Canada and 10% on Chinese goods. The move has heightened tensions, with Canada and Mexico pledging retaliation, while China plans to challenge the tariffs at the WTO.
Market Dynamics Shift
Recent tariff news spurs investors to retreat to more traditional assets. As Chris Weston noted, cryptocurrency has become a barometer of risk. Matt Hougan from Bitwise views Trump's executive order as a potential disruptor to traditional market cycles, promoting broader crypto adoption.
The imposition of new US tariffs has significant repercussions for the crypto market, leading investors to seek safety.
