Crypto market freefall: $500 billion wiped out after Trump’s tariff announcement; Bitcoin drops to 3-week low – Cryptocurrency News
The global cryptocurrency market experienced a significant downturn on Monday morning, shedding nearly $500 billion in market capitalization since late Saturday evening. The global crypto m-cap plummeted around 14 per cent from $3.49 trillion to $3 trillion, according to the data from Coinmarketcap.com
The decline followed U.S. President Donald Trump’s announcement of substantial tariffs on February 1 on imports from Canada, Mexico, and China, intensifying fears of a global trade war.
Bitcoin (BTC), the leading cryptocurrency, saw its value drop to a three-week low of $92,584 from $90,692 on January 13 and $102k on Saturday night, highlighting the market’s sensitivity to geopolitical developments.
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Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also faced a sharp decline. Its price plummeted to $2,326, marking its lowest point since September last year, from $3,200 on Saturday night. This substantial drop underscores the broader market’s vulnerability amid escalating trade tensions.
Other notable cryptocurrencies were not spared. XRP, affiliated with Ripple, experienced a significant downturn, with its price decreasing to $1.9, down from $2.99 on Saturday evening. This decline positions XRP as one of the worst-performing assets among the top cryptocurrencies.
Solana (SOL) also, known for its high-performance blockchain capabilities, also faced challenges. The cryptocurrency’s price fell to $183 from around $226 post imposition of tariffs, contributing to the overall market’s decline. This reflects the pervasive impact of the announced tariffs across various digital assets.
Newly launched meme coins by Trump and first lady Melania Trump, which are already seeing a downfall, plummeted further. While $Trump meme coin was down to $17 from around $23 on Saturday, $Melania coin was reduced to $1.34 from $1.71.
The imposition of a 25% tariff on Mexican and most Canadian imports, along with a 10% tariff on Chinese goods, has heightened investor apprehension. The immediate retaliatory measures from Canada and Mexico, coupled with China’s challenge to the US tariffs at the World Trade Organization, have further fueled concerns about a potential global economic slowdown.
The cryptocurrency market, known for its volatility, has been particularly sensitive to such macroeconomic developments. This underscores the interconnectedness of global economic policies and the digital asset landscape.
Trump, who had earlier called crypto a scam, has shifted his stance as pro-crypto, passing executive orders to support the US crypto industry. For instance, setting up a presidential working group tasked with developing a federal regulatory framework for digital assets, including stablecoins and evaluating the establishment of a national digital assets stockpile.