Cryptocurrencies took a major hit recently, with Bitcoin and Ethereum plummeting to levels not seen in a while. This dramatic drop is largely due to global economic anxieties.
A Market in Freefall
The crypto market saw a massive sell-off, losing over 10% in just 24 hours. Bitcoin plunged over 6%, dipping below $92,000, while Ethereum took an even bigger hit, falling 20% to below $2,400.
Trump’s Tariffs: The Spark
This crash followed President Trump’s announcement of hefty tariffs on imports from Mexico, Canada, and China. These trade actions, and the threat of further tariffs on the European Union, ignited fears of a global trade war. This uncertainty spooked investors, leading to a wave of selling in riskier assets like cryptocurrencies.
Trade War Fears Fuel the Fire
The potential for a trade war is bad news for the global economy. Concerns about recession and stagflation are driving investors to cash out, including from crypto markets.
Expert Opinion: Buy the Dip?
Finance expert Robert Kiyosaki predicted this crash, warning about the impact of the tariffs. However, he sees it as a buying opportunity rather than a cause for panic, believing that the underlying issue is excessive debt and that crypto will ultimately recover.
More Pain Possible?
The crypto market could face further downward pressure depending on how the stock market reacts to the ongoing trade tensions. Institutional investors holding crypto through ETFs could also trigger additional sell-offs as they adjust their portfolios.
Trump Under Fire from Crypto Community
The crypto community isn’t happy with President Trump. While he’s often seen as pro-crypto, his actions are viewed as contributing to the downturn. The slow progress on creating a US Bitcoin reserve and the launch of a Trump-branded meme coin are both cited as factors that may have negatively impacted the market.