The recent #downturn in the #crypto market appears to be a direct result of several key factors. First, the new #tariffs announced by President Donald #Trump on August 1st have sparked increased concerns about a potential global recession. This has caused a ripple effect across financial markets, with investors shifting away from riskier assets like #cryptocurrency .
In addition, the market saw significant highs in July, which led to a wave of profit-taking. As traders cashed out, it triggered a series of mass liquidations, further accelerating the price correction.
Given this tense and volatile environment, it's important to approach trading with caution. Remember that market sentiment can be counterintuitive: periods of extreme fear can be excellent buying opportunities, while widespread greed can signal a potential market top.