Digital Assets Sink Amid Trade War Fears
The week started on shaky ground for digital assets, with major tokens seeing steep declines. Investor uncertainty is rising, fueled by Donald Trump’s new tariffs and fears of a trade war.
- Bitcoin drops to $91K, sparking concerns across markets.
- Ethereum and meme tokens plunge 20%, mirroring the broader selloff.
- Trump’s tariff policies raise questions about potential economic ripple effects.
Markets React to Trade Tensions
With new tariffs imposed on Canada, Mexico, and China, global markets saw a sharp reaction. Risk assets, including digital currencies, took a hit as investors adjusted their strategies. Bitcoin and altcoins showed significant volatility, with steep selloffs leading to billions in liquidations.
The total market valuation tumbled 9.5% to $3.04 trillion, while trading volumes surged 182% to $286.91 billion as traders rushed to reposition.
Bitcoin’s Slide: Hits $91K Before a Slight Recovery
BTC lost 5% on the day, trading just above $94K at last check. Its lowest dip reached $91,242, while intraday highs briefly touched $100,485. Despite the drop, Bitcoin‘s dominance increased to 61.38%, suggesting that smaller assets bore the brunt of the selloff.
Liquidations totaled over $397 million, reflecting the sharp price movement.
Ethereum Tumbles Nearly 20%
ETH suffered one of its worst daily losses, falling 18% to $2,551. It fluctuated between $2,159 and $3,137 within 24 hours. The downturn coincided with large sell-offs, including one from a whale account that had been inactive for over six years.
Ethereum liquidations surpassed $576 million, adding pressure to the market.
Other Tokens Under Pressure
- XRP: Dropped 20% to $2.26, with a daily low of $1.95. Liquidations reached $110.5 million.
- Solana (SOL): Slipped 6% to $197, with a floor at $180. Liquidations hit $83 million.
- Meme Tokens: Dogecoin (DOGE) fell 22% to $0.2326, while Shiba Inu (SHIB) sank 21% to $0.00001355. PEPE saw the largest drop, tumbling 26%.
The coming days will be crucial as traders assess whether this downturn is temporary or the start of a larger trend.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
