Since early April, the cryptocurrency market has shown a sharp decline due to new US tariffs and investor panic.
Market Losses
As of the morning of April 5, the total cryptocurrency market capitalization stood at approximately $2.65 trillion, down 10% to $2.37 trillion. Cryptocurrencies such as Bitcoin and Ethereum have suffered significant losses: Bitcoin lost 9.5%, while Ethereum dropped by 20%.
Liquidation on Financial Markets
In the last 24 hours, there has been a significant amount of liquidation in leveraged trading. The total liquidations reached about $1.5 billion, with $1.24 billion coming from long positions. Many investors faced the inability to meet margin requirements.
Economic Instability Due to Trump's Tariffs
The decline is occurring amid new tariff policies announced by US President Donald Trump, leading to increased economic uncertainty. This step has resulted in drops in global stock markets: for instance, US markets fell by 9.84%, and European markets by 9.88%. Renowned investor Bill Ackman warned that these measures could trigger a chain of economic crises.
Thus, the concurrent crisis in stock and cryptocurrency markets underscores the importance of caution and risk analysis, especially in times of global economic instability.
