Prices of the most famous cryptocurrencies are plummeting today. They are reacting to US President Donald Trump’s weekend announcement that the United States will impose tariffs on imports from Mexico, Canada and China, sparking fears of a trade war. Bitcoin fell well below $100,000 (2.5 million). The second-largest cryptocurrency, ether, then lost more than 26 percent in Asian trading, weakening the most in a day in nearly four years.
Cryptocurrencies in slump, Bitcoin falls below $100,000
Bitcoin was losing 4.7 percent to roughly USD 95,100 shortly before 10 a.m. EDT over the past 24 hours, according to cryptocurrency exchange CoinDesk. Overnight, it fell as low as $91,304. The highest the largest and oldest cryptocurrency has traded was on the day of Trump’s inauguration on Jan. 20, when it surpassed the $109,000 mark for the first time.
Ether fell as much as 26.5 percent to USD 2, 135 in Asia this morning , its biggest one-day percentage drop since May 19, 2021, according to Bloomberg. It then lost 17.6 percent to about $2,560 before 10 a.m. EDT. Other digital currencies, such as solana and XRP, are also posting losses. Trump’s digital currency $Trump was depreciating about 15 percent. Cryptocurrencies are generally considered risky assets. According to AFP, investors are now ditching them mainly to offset losses in other markets that are struggling after the introduction of tariffs.
The cryptocurrency collapse continues
“We are witnessing a widespread collapse of cryptocurrencies: the markets are going into risk aversion mode,” stressed Stephen Innes, an analyst at SPI Asset Management. Above all, he said, “there is a rush to find liquidity, with traders shedding speculative assets to prepare for what could be a tidal wave of margin calls” in the equity and foreign exchange markets, which are experiencing sharp declines, forcing investors to make up losses there.
“Ether is being battered (on Monday) more than bitcoin or solana because we expect those are likely to form part of this strategic margin,” unlike ether, said analyst Jonathan Yark of Acheron Trading. “As a result, ether is much less resilient and subject to increased volatility,” he added. According to media reports in January, the Trump administration intends to loosen the regulatory framework for digital currencies. It is also considering the creation of a national cryptocurrency strategic reserve, which was one of the reasons why the price of bitcoin rose so sharply before Trump’s inauguration. It roughly doubled from last September to this January.
Source: Reuters
