Trend Track
Crypto Market in Turmoil as Traders React to Tariff Announcement
In Singapore, Ether fell more than 25% on Monday morning as traders offloaded their holdings in response to the latest Trump tariffs announcement. The crypto market witnessed a significant crypto crash today, with other major digital assets following a downward trajectory. Bitcoin (BTC) price also took a hit, while Dogecoin (DOGE) and other memecoins faced steep declines. According to Bloomberg, Ether, the second-largest cryptocurrency by market value, plunged as much as 27% to $2,135 before slightly recovering. This marked the biggest intraday drop for Ether since May 2021.
Why Is Crypto Down?
The primary factor behind the crypto market downturn is the unexpected announcement of new tariffs by US President Donald Trump. These tariffs have heightened economic uncertainty, leading to a risk-off sentiment among investors. Traders are now more cautious, reducing exposure to volatile assets like Bitcoin, Ethereum, and Dogecoin.
Additionally, the broader financial markets have been impacted by fears of a slowdown in global trade. Investors are shifting towards traditional safe-haven assets such as gold and US Treasury bonds, further exacerbating the sell-off in the crypto market.
Bitcoin (BTC) Price Takes a Hit
The Bitcoin price also experienced a sharp drop, falling below key support levels. BTC, the world’s largest cryptocurrency, declined by over 15% in early Monday trading. Market analysts suggest that if the bearish trend continues, Bitcoin could face further downward pressure, potentially testing the $35,000 mark in the coming days.
Dogecoin and Other Memecoins Plummet
Alongside Bitcoin and Ether, memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) also suffered heavy losses. DOGE, which had recently gained traction due to social media hype, lost more than 20% of its value. The decline in memecoins suggests that retail traders, who primarily drive their momentum, are pulling out of high-risk investments amid growing economic concerns.
Crypto Market Outlook: What’s Next?
With the crypto crash today, investors are questioning the future trajectory of digital assets. While some analysts believe that this is a temporary reaction to geopolitical developments, others warn of a prolonged bear market.
Key factors to watch include:
Further updates on Trump’s tariff policies
The Federal Reserve’s stance on interest rates
Institutional investor sentiment in the crypto market
Conclusion
The latest crypto market downturn highlights the volatile nature of digital assets. As Bitcoin (BTC) price, Ether, and Dogecoin (DOGE) face heavy losses, traders are reevaluating their strategies. Whether this is a short-term correction or the beginning of a longer bearish phase remains to be seen. However, one thing is clear: crypto traders must brace for heightened market uncertainty in the coming weeks.
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