This weekend, financial markets faced sharp volatility as US President Donald Trump announced possible new tariffs on the European Union, triggering panic selling in the crypto market.
Overview of the Situation
The cryptocurrency market faced serious turmoil following US President Donald Trump's announcement of a potential 50% tariff on EU goods starting June 1. This statement came as a surprise after recently reported 'successful talks' with China.
Market Reaction
Bitcoin dropped below $109,000, while XRP saw a decline of over 3.5% during the day. Over $500 million in long positions were liquidated within less than 24 hours, impacting more than 150,000 traders.
Expert Opinions
Expert Michael van de Poppe noted that the market correction was due to renewed tariff fears on the EU, presenting buying opportunities for Bitcoin and altcoins. He believes such panic moments can yield significant returns in the short term.
The situation in the crypto market demonstrates high sensitivity to political statements. Potential new tariffs from the US could lead to further price fluctuations and have lasting effects on the market.
