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Crypto Bloodbath: Bitcoin and Ether Plunge on Tariff Uncertainty
The cryptocurrency market is experiencing a brutal sell-off, with major assets like Bitcoin and Ether plummeting in value. The sudden decline can be attributed to the uncertainty surrounding Trump’s recent tariff announcements.
Trump’s decision to impose a 25% tariff on imports from Canada, Mexico, and the EU, along with a 10% tariff on Chinese goods, has reignited fears of a global trade war. Investors are worried that these measures could drive up inflation, weaken consumer purchasing power, and slow economic growth.
Hedge Funds and Liquidations Adding Fuel to the Fire
Adding to the market’s woes is the offloading of crypto ETF holdings by hedge funds. This sudden sell-off has led to $1.34 billion in crypto liquidations over the past 24 hours, with Bitcoin and Ether accounting for the majority of these liquidations.
The surge in liquidations has rattled investor confidence, as reflected in sentiment indicators like the Crypto Fear and Greed Index, which remains deep in Extreme Fear territory.
Broader Market Impact
The broader crypto market is feeling the heat, with the total market cap plummeting 7.25% to $2.65 trillion. Bitcoin and Ethereum are continuing their downward trend, currently trading at around $79,000 and $2,100 respectively.
Other digital assets like XRP, Dogecoin, BNB, and Solana have also been significantly affected, with losses ranging from 7% to 11%. The affected asset prices are as follows: $2.03, $0.1864, $571, and $130, respectively.
Future Outlook
Analysts are closely monitoring Bitcoin’s critical support levels. If Bitcoin fails to hold its current levels, a deeper correction could lead to further losses, potentially triggering more liquidations and heightened volatility.
The crypto market is facing unprecedented challenges as tariff uncertainties combine with hedge fund sell-offs to create a perfect storm of fear and uncertainty. The coming days will be crucial in determining whether the market can stabilize or if further declines are on the horizon.
Stay tuned for further updates and insights from Crypto Economy!
Source: https://crypto-economy.com/crypto-bloodbath-bitcoin-and-ether-plunge-on-tariff-uncertainty/
