crypto market crashing: Why Crypto is falling sharply: What triggered Bitcoin, Ethereum, Solana, and XRP sell-off?
Why is Crypto falling sharply?
The biggest reason behind the market crash is Trump’s new tariff policy, which includes:
25% tariffs on imports from Canada and Mexico
10% tariffs on goods from ChinaThese trade restrictions have sparked concerns about a global economic slowdown, leading investors to pull money out of riskier assets like Bitcoin and Ethereum. The impact has been felt across both traditional and crypto markets.
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How are major cryptos reacting?
Bitcoin’s dip below $97,000 is significant, as it had been trading steadily above this level in recent weeks. Other major cryptocurrencies also tumbled:Ethereum (ETH) dropped 3.2% to $4,800
Solana (SOL) fell 5.1% to $95
Dogecoin (DOGE) lost 4.5%
XRP plummeted 9.7%, hitting $2.35This sharp decline highlights how global economic policies directly affect the crypto market.
Federal Reserve’s role in crypto’s fall
The Federal Reserve recently confirmed that it will maintain current interest rates, citing inflation concerns. High interest rates generally weaken Bitcoin and other digital assets, as they reduce overall market liquidity.
Many crypto investors had expected Trump’s policies to be crypto-friendly, but the immediate impact of his trade decisions has been negative.
What’s next for Bitcoin and the Crypto market?
With rising trade tensions, analysts expect continued volatility in Bitcoin and other cryptocurrencies. Investors are closely watching how China, Canada, and Mexico will respond to the tariffs. If the situation worsens, the market could see further losses.
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FAQs:
Why is the crypto market falling today?
The crypto market is dropping due to rising economic uncertainties, leading investors to move away from risky assets like Bitcoin and Ethereum.
How much has Bitcoin fallen in the latest crash?
Bitcoin has fallen below $97,000, marking a 2.5% loss, while other major cryptocurrencies like Ethereum and Solana also declined.
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