Major cryptocurrencies experienced significant declines as the trading week began in Asia. Bitcoin (BTC) dropped by 8%, trading above $93,100. Ether (ETH) fell nearly 20% to around $2,500, while Solana’s SOL decreased by 13% to $184. XRP saw a dramatic 28% plunge, now valued at $2. The CoinDesk 20 index, covering the largest digital assets, also fell nearly 17%. Over the past 12 hours, about $1.3 billion in long positions were liquidated, with considerable losses in both BTC and ETH. This Market correction appears linked to a trade war triggered by U.S. tariffs imposed by President Trump, causing skepticism and concerns about economic impacts among observers.
Major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana’s SOL, and XRP, faced steep declines as Asia commenced its trading week. By mid-morning in Hong Kong, Bitcoin was down 8%, hovering just above $93,100, according to CoinDesk Indices data.
Ether saw a drop of nearly 20%, trading at $2,500, while Solana suffered a 13% decrease to $184. XRP experienced the most significant decline, plummeting by 28% to $2. The CoinDesk 20 index, which tracks the largest digital assets, was down almost 17%. Additionally, TRUMP, a memecoin associated with former President Donald Trump, also fell by 12%.
In the last 12 hours, nearly $1.3 billion in long positions have been liquidated across the Market, with substantial liquidations of around $400 million in long Ether positions and $300 million in Bitcoin. This significant Market correction appears to be linked to new tariffs announced by President Trump on Canada and Mexico, potentially igniting a trade war.
Market analysts are expressing skepticism about the potential benefits of these tariffs. Critics, including the Wall Street Journal editorial board, have labeled this situation “the Dumbest Trade War in History.” The European Union has promised a strong response to any tariffs affecting its members, with a Politico spokesperson stating that “tariffs create unnecessary economic disruption and drive inflation.”
Interestingly, the United Kingdom might escape these tariffs, with Trump suggesting a deal could be arranged. In response to the criticism surrounding his policies, Trump took to Truth Social, asserting that those who disagree with him are being funded by China.
Looking ahead, the cryptocurrency Market’s direction will likely depend on how these geopolitical factors develop and their subsequent impact on trade within the global economy.
Tags: Cryptocurrency, Bitcoin, Ethereum, Trade War, Donald Trump, Digital Assets, Market Correction, Cryptocurrency Prices.
What caused the Bitcoin price to drop 8% to $93K?
The drop in Bitcoin’s price is mainly tied to rising concerns around U.S.-China trade tensions. As Asia’s markets react to these tensions, it has impacted investor sentiment, leading some to sell their Bitcoin holdings.
Is the drop in Bitcoin price a long-term trend?
Right now, it’s hard to say if this drop will continue. Bitcoin is known for being volatile. Factors like Market speculation, global news, and economic indicators can change things quickly.
What impact does Trump’s trade war have on Bitcoin?
