Bitcoin’s price drops 8% to $93K amid fears of a trade war initiated by Trump. Other cryptocurrencies like ETH and SOL also experience significant declines. The situation has led to over $1.3 billion in long positions liquidated, raising concerns about the economic impact of new tariffs.
As Asia wakes up to the brewing storm of President Trump’s trade policies, the cryptocurrency market reflects mounting anxiety. Bitcoin (BTC) sees a significant drop of 8%, hovering just above $93,100, while other major cryptocurrencies like Ethereum (ETH) and Solana (SOL) decline sharply. This downturn has shocked investors, with ETH sinking nearly 20% to around $2,500 and SOL plummeting 13% to $184.
The CoinDesk 20 index reveals a broader market downturn, down nearly 17%, as fears of tariffs hang heavy in the air. Trump’s ongoing comments about a trade war have sparked criticism, labeling the tariffs as potentially disastrous. In just 12 hours, almost $1.3 billion worth of long positions were wiped out, with significant losses in both BTC and ETH.
A Wall Street Journal editorial has called the burgeoning trade war the “Dumbest Trade War in History,” raising eyebrows regarding its effectiveness. Brussels has warned of firm retaliation to protect its members against potentially harmful U.S. tariffs. A spokesperson stated, “Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.”
Amidst the turmoil, the UK appears to bask in some protection from tariffs, with Trump indicating a deal could be reached. However, Trump’s dismissive remarks on social media suggest a willingness to ignore criticism, which he claims is influenced by foreign interests.
Market participants watch closely as these developments unfold, understanding that the intertwining of politics and economics has the potential to reshape the financial landscape dramatically.
In summary, the cryptocurrency market is reacting sharply to President Trump’s aggressive trade policies, with Bitcoin and other major cryptocurrencies enduring significant losses. The uncertainty surrounding tariffs has led to liquidations worth billions, as market sentiment turns bearish. With global economic implications at play, investors will need to remain vigilant as this story unfolds.
Original Source: www.coindesk.com
