introduction #CryptoTariffDrop
The recent crypto tariff drop was triggered by President Trump's announcement of sweeping tariffs on over 100 countries, including a 104% tariff on China. This move caused significant market uncertainty, leading to a substantial decline in cryptocurrency values.
ETHUSDT
1,473.58
-6.25%
*Key Impacts on Crypto Market:*
- *Total Market Capitalization*: Dropped by 30% from its peak in December 2024, falling from $3.9 trillion to $2.7 trillion.
- *Bitcoin*: Fell by 6.8%, hovering near the critical $75,000 level, with some analysts warning that a drop below this threshold could trigger a broader market downturn.
- *Ethereum*: Experienced a sharp 25% drop, erasing all post-election gains and pushing it to a five-month low.
- *Other Cryptocurrencies*: XRP and Solana suffered double-digit losses, with many traders using margin to amplify gains, leading to forced liquidations and accelerating losses .
*Why Crypto Reacted More Sharply Than Stocks:*
- *Continuous Trading*: Crypto markets operate 24/7, leading to heightened volatility.
- *High Leverage*: Many traders use margin, amplifying losses during downturns.
- *Ethereum's Role in DeFi*: Automated liquidations disproportionately affected ETH due to its.
