Cryptocurrency Market Collapses Amid Trump’s Trade War

Bitcoin and other cryptocurrencies have seen their market caps fall amid macroeconomic uncertainty and trade tariffs imposed by the US president, which have prompted investors to dump risky assets. Earlier today, the price of Bitcoin fell below $75,000 per coin, while XRP, SOL and DOGE lost more than 20% of their value. At the time of publication of this news, the Bitcoin rate has stabilized slightly and is located around $77,150 per coin (data from CoinDesk).

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The CoinDesk 20 Index, which tracks the largest digital assets, fell 12%, signaling negative sentiment among investors who expect a reduction in risks amid general economic uncertainty. The decline was led by the coins XRP and SOL, which fell more than 20% in a day. XRP is currently trading at $1.78 per coin, while the price of SOL is around $100 per coin. The meme cryptocurrency DOGE also fell 20% to $0.13 per coin.

Image source: Coindesk

The main reason for the fall of the cryptocurrency market is the new tariff rates on imports of goods to the United States, which were introduced last week by American President Donald Trump. Recall that tariffs on China increased by 34%, despite the fact that before this, the American government had already raised the rate on goods from China twice by 10%.

Currently, tariffs on goods from China have reached 54%, which prompted the country to introduce retaliatory restrictive measures, including tariffs on goods from the United States in the amount of 34%. According to the source, the Chinese authorities are considering options for introducing additional measures to stimulate the economy in order to reduce the negative impact of the increase in tariffs from the United States.