Crypto Market Tumbles After Surprise Trade Announcement
The global crypto market saw a sharp sell-off after former U.S. President Donald Trump announced new tariffs on the European Union and foreign-made smartphones, including Apple products. This unexpected move rattled both equity and crypto investors, triggering a widespread risk-off sentiment.
Bitcoin (BTC) slipped below $109,000, hitting an intraday low of $107,160 before a slight recovery to $109,121.
Altcoins Hit Hard: DOGE and XRP in Red
The negative momentum wasn’t limited to Bitcoin. Altcoins such as Dogecoin (DOGE) and XRP experienced double-digit losses, reflecting investor fear and market uncertainty.
- DOGE dropped over 12.7%, now trading at $0.2287, down from an earlier high of $0.2374.
- XRP plunged by more than 15%, with prices settling near $2.35, down from $2.38 earlier in the day.
“DOGE and XRP are under strong selling pressure as traders offload high-risk assets,” said a crypto analyst at TradingView.
$10 Billion Liquidated in 24 Hours
The sharp declines in prices also triggered massive liquidations in leveraged positions. According to data from CoinMarketCap:
More than $10 billion in crypto positions were wiped out within 24 hours as exchanges like Binance, Bybit, and OKX saw a flood of forced closures.
This mass liquidation event has led to increased volatility, forcing traders to adopt more cautious strategies.
What Sparked the Panic?
At the core of the issue is Trump’s unexpected proposal to impose high tariffs on EU imports and smartphones made outside the U.S., including Apple products. The announcement sparked fears of global trade tension, which is traditionally bearish for speculative assets like cryptocurrencies.
“Markets are shifting into risk-off mode amid fears of a prolonged trade war,” stated a report from Cointelegraph.
Market Outlook: Short-Term Uncertainty, Long-Term Potential
While the short-term outlook remains uncertain, some experts believe that Bitcoin could bounce back once the market stabilizes.
“This dip may present a buying opportunity if macro fears subside,” said a senior analyst at CryptoQuant.
In contrast, altcoins like DOGE and XRP may take longer to recover, especially given their higher volatility and reliance on retail speculation.
Conclusion: Traders Eyeing the Next Move
The crypto market is once again proving to be sensitive to global geopolitical and economic developments. Investors and traders alike are watching closely for further policy shifts, especially as the U.S. enters an election cycle where Trump’s return to influence could shape crypto regulation and trade policies.