Crypto majors retract gains amid U.S.-China tariff tensions

Major cryptocurrencies experienced a significant surge, with some increasing by as much as 20%, following a large liquidation event where $2.2 billion was wiped out.

This rise was attributed to traders adopting a buy-the-dip strategy, which initially appeared profitable. However, the gains were short-lived as China's announcement of retaliatory tariffs on the U.S. led to a reversal of the bullish momentum.

The uptick in cryptocurrency values saw a pullback during the Asian morning hours as the deadline for the U.S. to impose additional tariffs on China passed without any resolution. Despite this, $XRP , dogecoin ($DOGE ), Solana’s $SOL , and Cardano’s ADA managed to maintain an increase of nearly 3%. Bitcoin (BTC) and ether (ETH) also held onto gains, each rising nearly 4%.