A significant downturn was witnessed in the Cryptocurrency market after President Donald Trump launched new tariffs on important US trading partners. The tariffs were imposed on Saturday, sparking widespread economic anxiety.
According to the Economic Times, bitcoin on Monday fell to a three-week low of $91,441. Whereas, Ethereum hit its lowest point since September. This decline was a result of fears of inflation, economic instability and possible retaliation from Canada, Mexico and China.
The recent trade policy imposed by Trump imposed a 25% tariff on imports from Canada and Mexico. Along with this, a 10% tariff on Chinese goods was also imposed, reigniting fears of a global trade war.
Investors are concerned that these tariffs could lead to increased inflation and end consumer purchasing power which could further hinder economic growth.
The cryptocurrency market had a sharp reaction to the tariff news, with over $2 billion in leveraged liquidations taking place in just 24 hours. Bitcoin fell below the $100,000 mark before falling more to $92,000. This marked one of the most significant drops since early January.
Ethereum and other digital currencies like dogecoin and XP also suffered losses, exceeding 30%. Even though the White House has assured that these tariffs are going to help American manufacturing to be strong, experts have issued warnings. They have warned that they may result in intensifying the pressures of inflation and pave the path for a larger trade conflict.
Economic analysts have warned that increased tariffs could worsen inflation as businesses would pass on extra costs to the consumers. It is feared that these tariffs could result in the loss of jobs and could also disrupt the supply chain.
Market analysts are keeping a close watch on Bitcoin as it tests crucial support at $93,878 after a sharp decline in the last 24 hours.
Business Journalist
Subscribe to our newsletter and get top Tech, Gaming & Streaming latest news, updates and amazing offers delivered directly in your inbox.
