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Bitcoin is trading at a three-week low of $95,300, while Ethereum was at nearly a two-month low of $2,556 as tariff impositions by US President Donald Trump lead to nearly $2 billion in liquidations in the crypto market.
Crypto Market Crash.
The cryptocurrency market declined sharply on Monday as tariff impositions by US President Donald Trump on Mexico, Canada and China, and likely on the European Union, deepened the global trade tariff war, leading to nearly $2 billion in liquidations in the crypto market. Bitcoin traded at a three-week low during afternoon trade on Monday, while Ethereum was nearly at a two-month low.
According to crypto trading platform binance.com, as of 13:58 pm IST, Bitcoin was trading lower by 4.4 per cent at $95,300 amid subdued investor sentiment, the lowest since January 14 when it hit $94,948.1. Another crypto major, Ethereum, was down by 17.8 per cent at $2,556, the lowest since November 4.
Avinash Shekhar, co-founder and CEO of Pi42, said, “The crypto market remains on a knife’s edge amid global policies and changing investor sentiments. The slip of Bitcoin below $100,000 is a quest for resilience, with key support levels at $95,000 and $90,000 that define the line of battle for bulls and bears.”
Why Is Crypto Market Down Today?
According to experts, the crypto market is facing a sell-off due to the dampening of investor sentiment amid Trump’s tariffs.
Shekhar said, “Donald Trump imposed tariffs on Canada, Mexico and China, which led to nearly $2 billion in liquidations in the crypto market as the whole crypto market is bleeding red.”
Echoing a similar view, CoinSwitch Markets Desk said in a statement, “With US President Trump imposing massive tariffs on certain countries, the Asia open marks one of the largest liquidations in the crypto markets in recent times, with approximately $2 billion in liquidations in the last 12 hours alone.”
US President Donald Trump on Saturday imposed a 25 per cent tariff on Canada and Mexico, and 10 per cent on China, effective from Tuesday. His protectionist trade policies triggered a fresh trade war with the US’s top three trade partners.
Trump on Sunday also said he would be implementing tariffs on goods from the European Union “pretty soon”, further hitting investor sentiment.
What’s Next In The Crypto Market?
Pi42’s Shekhar said the fortunes of digital assets depend on macroeconomic factors and confidence among investors. A pullback above $100,000 could very well add momentum again, though a cautious approach is necessary. Crypto markets thrive on volatility; apparently, a bearish market today could set the stage for bullish signals tomorrow.
“Meanwhile, India is reviewing its stance on cryptocurrencies due to shifting attitudes towards the virtual asset in other countries,” he added.
Economic Affairs Secretary Ajay Seth in an interview has said “don’t believe in borders, India’s stance cannot be unilateral”.
According to CoinSwitch Markets Desk, BTC has strong support around the $90,000 mark, and it seems unlikely to break, especially with gold recently hitting an all-time high. BTC dominance has also risen sharply to 61 per cent, indicating risk-off sentiment within the crypto markets.
