The crypto market is currently experiencing a downturn as US President Donald Trump imposed a 245% tariff on Chinese goods. This move has escalated the trade war between the two countries, causing concerns among investors and affecting the prices of digital assets. Bitcoin, ETH, XRP, SOL, DOGE, and Cardano prices have all fallen between 2% and 7% as a result of this development.
Trump’s decision to impose the tariff on China comes after a series of previous tariff hikes and retaliatory measures between the two countries. The White House cited national security and economic resilience as key reasons for the latest move, which has further dampened market sentiment in the crypto space. The escalating tensions between the US and China are now spilling over into the financial sector, including cryptocurrencies.
The global crypto market cap has seen a decline of more than 2.3% to $2.63 trillion, with a one-day volume drop of 6% to $73.89 billion. The fear and greed index is currently indicating a “Fear” momentum in the market with a reading of 29. Bitcoin price fell by over 2.5% to $83,368.76, while ETH, XRP, SOL, DOGE, and Cardano prices also saw losses ranging from 4% to 7%.
Bitcoin whales are also contributing to the downturn in the market by continuing to sell off their holdings amid the uncertainty caused by the trade war. Speculations are rife that whales are booking profits and reducing their risk exposure due to the escalating tensions between the US and China. Renowned analyst Ali Martinez pointed out that whales have offloaded more than 29,000 BTC since April 9, reflecting a lack of confidence in the asset’s potential in the current market conditions.
Overall, the crypto market is facing significant challenges due to the escalating trade war between the US and China. The imposition of a 245% tariff on Chinese goods by President Trump has further dampened investor sentiment and affected the prices of digital assets. As the situation continues to unfold, investors will need to closely monitor developments in order to make informed decisions in the volatile crypto market.
