Global cryptocurrency markets are experiencing the impact of geopolitical events, causing instability and uncertainty. Despite partial recovery in key assets, growth prospects remain murky.
Crypto Prices Plummeted Followed by a Volatile Recovery
Following President Trump's announcement of new tariffs on imports from China, Canada, and Mexico, cryptocurrencies faced sharp declines earlier this week. However, after a temporary pause in tariffs on Mexico and Canada, crypto prices experienced partial recovery. Nonetheless, the market remained volatile due to China's retaliatory measures and other geopolitical risks.
Record Liquidations and Institutional Flows
Market events also affected institutional investments in cryptocurrencies. According to CoinShares, global crypto funds attracted $527 million over the week, with the largest flows in Bitcoin and XRP. Meanwhile, MicroStrategy temporarily halted BTC purchases, adding to market uncertainty.
Kimchi Premium Surge and India's Reassessment
In South Korea, the 'kimchi premium' surged to a three-year high, signaling increased demand for Bitcoin among Korean retail traders. As global markets adjust to policy risks, India is reconsidering its stance on digital assets, which could significantly affect the global crypto market.
The past week highlighted how macroeconomic events can influence cryptocurrency price dynamics. The evolving situation reveals the market's fragility and the need for continued monitoring of geopolitical risks.
