Tariffs announced by US President Donald Trump sent the cryptocurrency market into a tailspin, as investors pared exposure to riskier assets.Bitcoin, the world’s biggest and most popular crypto token, crashed 5% to $93,921.93 in Monday’s trading session and even touched a three-week low of around $91,441.89.Ether, the second-largest digital asset by market value, tanked over 26% to $2,135 in trade today. It was the token’s largest intraday decline in percentage terms since May 2021, according to data compiled by Bloomberg.Some of the other smaller tokens fared equally worse, shedding between 15-23%.Also Read | Sensex crashes 700 points; why is the Indian stock market falling today?Memecoin DOGE tanked 23% to $0.2313 according to data from coinmarketcap.com. Meanwhile, Solana was down 6% and XRP 21.60%.”The crypto market remains on a knife’s edge amid global policies and changing investor sentiments. The slip of Bitcoin below $100,000 is a quest for resilience, with key support levels at $95,000 and $90,000. Donald Trump imposed tariffs on Canada, Mexico and China which led to nearly $2 billion in liquidations in the crypto market as the whole crypto market is bleeding red,” said Avinash Shekhar, Co-Founder & CEO, Pi42.The fortunes of digital assets depends on the macroeconomic factors and confidence among investors, Shekhar explained. “A pullback above $100,000 could very well add momentum again-though but the cautious approach is necessary. Crypto markets thrive on volatility, apparently a bearish market today could set the stage for bullish signals for tomorrow,” he added.The crash in the crypto market comes on the heels of tariffs imposed by the US on China, Mexico and Canada. Over the weekend, Donald Trump levied 25% tariffs on Mexican Canadian imports, and 10% on goods from China, starting Tuesday.Canada and Mexico, the top two U.S. trading partners, immediately vowed retaliatory measures, and China said it would challenge Trump’s levies at the World Trade Organization.Also Read | What tariffs did Trump impose on Canada, Mexico and China? What happened next?The downslide in the crypto market also follows a sharp rally after Trump assumed his role as the US President.After he was sworn in as the 47th US President, Bitcoin prices had rallied past the $100,000 mark touching, a record high of $107,071.86 on expectations that he would bring in crypto-friendly regulations.On January 24, Trump signed an order that set up a group to create clear rules for crypto businesses in the US within six months. This group will also look into the idea of creating a crypto reserve.Also Read | Rupee at record low, crosses 87 per US dollar for the first timeTrump – who once labelled crypto a scam – embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet.”(With inputs from agencies)Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advi
Lun. Feb 3rd, 2025
