Bitcoin, Ethereum, and other tokens plummet after Trump imposes new tariffs – NewsBytes

Monday saw a significant downturn in the cryptocurrency market, with major cryptocurrencies like Bitcoin and Ethereum taking substantial hits. This crash was primarily triggered by US President Donald Trump’s decision to impose tariffs on imports from Canada, Mexico, and China. During this market turmoil, Bitcoin experienced up to a 6% decrease, nearly touching $93,000, while Ethereum saw a staggering 27% plunge at one point, marking the largest intraday drop since 2021.

As we moved into the afternoon in Singapore, Ethereum was seen trading at approximately $2,500, with Ripple-linked XRP also feeling the repercussions of the market downturn, falling by 17% to $2.20. These dramatic declines in cryptocurrency values were an immediate reaction to Trump’s tariff announcements over the weekend, which included a 25% tariff on Canadian and Mexican imports and a 10% duty on Chinese goods.

Caroline Bowler, CEO of BTC Markets, highlighted the overarching impact of Trump’s tariff war on the entire market. She stated that concerns related to trade wars and stagflation potentially leading to recessions were rippling through altcoins and Bitcoin. This market-wide effect starkly contrasts the recent optimism generated by Trump’s favorable stance towards cryptocurrencies during his campaign.

Ethereum faced intensified losses due to concerns about its liquidity, which is considered less resilient compared to other digital assets. Jonathan Yark, a senior quant trader at Acheron Trading, pointed out that Ethereum was suffering more than Bitcoin, Solana, and Ripple because of expectations that these other digital assets were more likely to be included in a US digital asset stockpile.

During the early hours of Asian trading on Monday, over $1 billion worth of leveraged crypto positions were liquidated, with Ethereum trades dominating this unwinding. Sean Dawson, head of research at Derive.xyz, suggested that Ether might find support in the $1,900-$2,000 range, with options markets pricing in a 25% chance of reaching $2,000 before the end of the month.

The broader cryptocurrency market was not immune to the impact, with total market capitalization plummeting by around $360 billion, as per data from CoinGecko. Even Trump-linked memecoins, established in recent weeks by Melania Trump, encountered sharp declines, trading well below their peak levels. This widespread market disruption underscores the high volatility of the cryptocurrency market in response to global economic events.