At midnight US time, punitive tariffs imposed by President Trump went into effect. Bitcoin, like stock exchanges around the world, reacted with losses. Prominent altcoins such as Ethereum, Solana, XRP, and Cardano were hit hard.
There’s really only one topic on the global financial markets these days: How severe will the consequences of significantly increased US trade tariffs on the global economy be? Uncertainty and fear already hit the crypto markets at the beginning of the week, and there’s no sign of a turnaround today. The price curves of Bitcoin and major altcoins such as XRP (Ripple), Ethereum, Solana, and Cardano are all in negative territory, leaving investors trembling. Let’s take a look at the details:
– Bitcoin (BTC), the leading cryptocurrency, got off relatively lightly with a daily loss of 2 percent and is currently holding at around $77,000. But even for Bitcoin ETFs, which are seen as a support, the wind is changing. According to data from SoSo, the capital outflow of the past few days has continued, amounting to $360 million on yesterday’s trading day alone. The hope that Bitcoin would be perceived as “digital gold” in times of crisis is not being realized.
– For Ethereum (ETH), the number two cryptocurrency, the price curve, with a 6 percent daily loss, indicates capitulation. Price levels now below $1,500 are pushing Ethereum back to the March 2023 level – and even this does not seem to be viewed by risk-tolerant investors as a situation that would justify investing in ETH.
– XRP, after a 2 percent daily loss, is trading at around $1.80, and Ripple was able to make its own mark with the multi-billion dollar acquisition of prime broker Hidden Road. But XRP also appears to be on the ropes, with Ripple’s cryptocurrency still benefiting from the enormous gains following Donald Trump’s election victory.
– Solana (SOL) remains at around $107 after a mild daily loss of 1 percent – in January, it was at least $250 at times. Now, Solana would probably be happy if at least the psychological mark of $100 held.
– Cardano (ADA), after a 2 percent daily loss, is fighting for support at the $0.50 mark, with familiar problems such as a lack of use cases coming back into focus.
– In the meme coin category, the losses for the official Trump representative have already totaled 26 percent over the past seven days, while Dogecoin (DOGE) is down 14 percent. MELANIA, Trump’s meme coin, has fallen to a new all-time low of under $0.50.
The list of red numbers could go on and on, and sentiment indicators for the crypto industry have shifted from “fearful” to “extremely fearful.” The search for glimmers of hope has so far been unsuccessful.
Conclusion: Is panic threatening Bitcoin and others?
It’s noticeable in the discussions surrounding the market situation that comparisons to dark moments in economic history such as the coronavirus pandemic (2020), the Lehman Brothers bankruptcy (2008), and the dot-com bubble (2000) are being drawn more and more frequently. Bitcoin, like top altcoins from Ethereum to XRP and Solana to Cardano and Dogecoin, is unable to decouple itself from the current dynamics. Trump is defending his aggressive trade policy while simultaneously offering negotiations – but so far, the results of this dual tactic have been disastrous. Will resistance at home prompt him to rethink his approach, or is Trump risking panic that would be difficult to contain? The week suddenly seems very long, and Bitcoin and others must prepare for difficult days.
[newsletter_form lists="1"]
