Bitcoin’s price actions took a significant downturn yesterday following US President Trump’s suggestion of a 50% general tariff against the European Union. This announcement has sent shockwaves through the cryptocurrency markets, with altcoins also suffering, resulting in over $100 billion exiting the space within a single day.
Bitcoin Falls Below $107,000
Despite starting the week on a relatively strong note, Bitcoin faced a rapid decline after Trump’s tariff announcement. Earlier in the week, the cryptocurrency was on a bullish trajectory, fluctuating between $104,000 and $107,000 on several occasions. This surge was abruptly halted, leading Bitcoin to plunge southward.
However, bullish sentiment did prevail temporarily as Bitcoin rose past its January all-time high of $109,100, reaching a new peak close to $110,000. Following this upward momentum, the price did experience some resistance at these levels, settling briefly around $106,500. Nevertheless, Bitcoin demonstrated resilience, propelling to an impressive peak of $112,000 on Pizza Day before retracting to about $111,000 on Friday.
Following the tariff suggestion, Bitcoin saw a dramatic fluctuation in its value, first dropping below $107,500 and then struggling to hold above $107,000, ultimately stabilizing just above $108,000, though still more than 2% down for the day. The cryptocurrency’s market cap now stands at $2.150 trillion, with a substantial market dominance of 61% over altcoins according to CoinGecko.
Altcoin Market Decline
The response across altcoins has been notably negative, mirroring Bitcoin’s bearish trend. Key players in the altcoin market, such as DOGE, ADA, SUI, SHIB, LINK, and AVAX, have experienced substantial losses up to 10%. Ethereum has followed suit, sliding over 5% to approximately $2,550, while XRP is now hovering just above $2.3 after a daily decline of 4.4%.
Even more severe drops are being reported from smaller altcoins like ENA, WIF, TIA, S, IP, and PEPE, with many plunging by double digits.
In total, the cryptocurrency market has seen a staggering loss of over $100 billion in value since yesterday, bringing the overall market cap down to approximately $3.530 trillion.
As the market continues to evolve, investors are urged to remain vigilant and adaptable to the fluctuating landscape influenced by external factors such as regulatory changes and geopolitical tensions.
