Recent tariff threats from former US President Donald Trump have led to a significant decline in the cryptocurrency market.
Reasons for the Crypto Market Decline
The cryptocurrency market witnessed a loss of $150 billion in a short period following Donald Trump's announcement threatening 100% tariffs on countries continuing trade with Russia. This event highlighted significant market volatility due to the geopolitical situation.
Market Response
Analysts noted substantial profit-taking by major holders immediately following Trump's announcement, leading to large liquidation volumes. Consequently, Bitcoin dropped below $117,000, catalyzing sharp declines in other major cryptocurrencies like Ethereum.
Expert Opinions and Implications
Experts suggest that escalating geopolitical tensions could prompt regulatory scrutiny of the crypto market, mirroring past instances where such conditions impacted asset volatility. Long-term investors and institutional players are now confronted with the need to reassess their strategies amid uncertainty.
The geopolitical situation's escalation and Trump's tariff threats continue to exert a considerable influence on the cryptocurrency market, generating concern among investors.
