Cryptocurrency markets saw a steep decline today as investors reacted to growing concerns over the escalating tariff war between the United States and China. Bitcoin (BTC) plunged 10.31%, falling below $83,000, while Ethereum (ETH) tumbled 15.44% to $2,048. Solana (SOL) recorded the sharpest drop, plummeting 19.72% to $136.23.
The latest downturn comes after former U.S. President Donald Trump announced a 20% tariff on Chinese imports, prompting Canada to retaliate with its own set of tariffs on U.S. goods. The uncertainty surrounding global trade has triggered panic across financial markets, affecting equities and digital assets alike.
Bitcoin’s sharp decline of over $9,500 in the last 24 hours signals a broader risk-off sentiment, with investors shifting towards safe-haven assets. Ethereum, which had been trading above $2,400 last week, suffered a steep correction as investor sentiment turned bearish. Meanwhile, Solana, which had shown strong momentum earlier, was the worst hit, falling nearly 20%.
Market analysts attribute the current sell-off to concerns over regulatory implications and potential capital outflows from digital assets as macroeconomic uncertainty looms. While cryptocurrencies have often been viewed as a hedge against economic instability, the ongoing geopolitical tensions have caused a massive liquidation across the sector.
The overall crypto market capitalization fell significantly, with major altcoins also experiencing sharp declines. Binance Coin (BNB) fell 8.74%, while XRP dropped 18.58%, further amplifying the market-wide correction.
Investors remain cautious as they await further developments in the tariff dispute, which could dictate the next direction for the crypto market. Analysts warn that if macroeconomic conditions worsen, Bitcoin could test lower support levels near $80,000, while Ethereum and Solana may see continued volatility.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and subject to market risks. Readers are advised to conduct their own research before making any investment decisions.
