The cryptocurrency market is back in the spotlight after China announced new tariffs against the United States. Tuesday's morning plunge came as a shock to investors, as China not only imposed new tariffs on American goods, but also launched an antitrust investigation against Google.
Chinese tariffs and their impact on the crypto market
Recent events in the cryptocurrency market remind us of how global economic processes can influence digital assets. Over $2.2 billion was liquidated due to investor uncertainty caused by tariffs from the U.S. China responded with tariffs on American goods, particularly coal, liquefied natural gas, oil, and agricultural equipment. These measures took effect immediately, triggering an instant reaction in the markets.
Cryptocurrencies in the red zone
Against the backdrop of these events, Dogecoin lost 5.8% of its value, while XRP decreased by 5.1%. Despite the overall decline, Bitcoin proved relatively resilient, dropping only 1.3% to reach $98,934. This indicates that, despite the turbulence, Bitcoin remains a stable asset compared to other cryptocurrencies.
Market reaction and potential consequences
In addition to cryptocurrencies, other markets also faced pressure. NASDAQ 100 futures fell by 1.7% for the day, and natural gas and oil also showed declines. At the same time, copper was the only commodity that demonstrated growth among major commodities. Analysts note that such economic confrontations can have a lasting impact on the markets, especially if tensions between the U.S. and China do not ease.
