The cryptocurrency market experienced a significant downturn today, with Bitcoins price dropping to a three-week low of approximately $91,441.89. Ethereum also saw a substantial decline, reaching its lowest point since early September at $2,494.33
This decline is largely attributed to investor apprehension over a potential global trade war. U.S. President Donald Trump recently imposed substantial tariffsā25% on Mexican and most Canadian imports, and 10% on Chinese goods. These actions have prompted immediate retaliatory measures from Canada and Mexico, and a challenge from China at the World Trade Organization. The escalating trade tensions have heightened concerns about global economic growth and inflation, leading investors to move away from riskier assets, including cryptocurrencies.
Additionally, the cryptocurrency market has been sensitive to broader market sentiments. Factors such as growth concerns and inflation fears associated with tariffs have contributed to the recent downturn. Despite an initial surge following TrumpĆ¢ā¬ā¢s election, driven by hopes of crypto-friendly regulations, the recent moves and lack of immediate regulatory support appear to have dampened investor spirits.Ć
In the past 24 hours, over $2 billion in crypto liquidations have occurred, further exacerbating the market decline. šš©·
