The current state of the cryptocurrency market reflects a significant downturn, marked by substantial losses across various coins. In the past 24 hours, many cryptocurrencies have experienced declines in value exceeding double digits, largely attributed to recent trade policies.
Despite Bitcoin’s decline being relatively moderate at around 6.5%, bringing its value down to approximately $93,600, altcoins have faced far steeper drops. Ethereum, for instance, has plummeted by more than 20%, now trading below $2,500. Meanwhile, XRP has similarly suffered a severe downturn, losing over 22.1% of its value.
The trending prices of meme-based cryptocurrencies have not offered any respite either. Dogecoin, fueled by endorsements from influential figures, has also experienced a sharp decline of about 23%. Another popular meme coin, Pepe, has seen its value decrease by nearly 26%.
This period reflects one of the most drastic sell-offs in the cryptocurrency sphere seen in recent years. Over the last day, liquidations in the market have surged beyond $2.2 billion, demonstrating the panic among investors. The futures market has been particularly hard hit, wiping out more than $600 million, especially during the early hours of trading in Asia. Notably, losses in positions associated with XRP and Dogecoin amount to around $150 million, while derivatives tracking other altcoins have incurred losses totaling about $138 million. Additionally, Ether futures based on Ethereum’s performance faced losses of $84 million.
The turmoil in the cryptocurrency market has been spurred by governmental measures, specifically the imposition of new tariffs targeting imports from Canada and Mexico. A recent executive order announced these tariffs, and similar measures have been put in place for imports from China as well.
Proponents of the tariffs argue that they are designed to safeguard domestic interests; however, the broader implications suggest the potential onset of a global trade conflict. As part of this retaliation, Mexico has already enacted tariffs targeting U.S. products including steel and dairy, while Canada is poised to apply a 25% tariff on $30 billion in American imports starting soon.
Interestingly, not long ago, the cryptocurrency market had been buoyed by the recent political landscape. The election of a new president coincided with a surge in cryptocurrency prices, and commitments were made toward favoring crypto regulations, including the establishment of a dedicated working group to address American cryptocurrency policies.
As the situation unfolds, the market continues to react to both domestic and international economic policies, leaving investors to navigate the repercussions of these trade decisions amidst an already volatile market environment. The nearing prospects of retaliatory tariffs and their influence on investor sentiment will likely keep the market in a state of fluctuation for the foreseeable future.