Bitcoin, Ether Plummet as Trump Tariffs Spark Crypto Sell-Off

Bitcoin and Ether Plummet as Trump Tariffs Spark Market Turmoil

President Trump's recent tariffs on imports from Canada, Mexico, and China have sent shockwaves through global financial markets, with Bitcoin and Ether leading the cryptocurrency sell-off. The announcement of the 25% tariffs on Canadian and Mexican imports, as well as a 10% levy on Chinese goods, has fueled fears of a global trade war and prompted investors to shift away from riskier assets.

Bitcoin, the world's largest cryptocurrency, dropped nearly 13% over the weekend, falling to a low of $91,201 on Binance. Ether, the second-largest cryptocurrency by market capitalization, also experienced a sharp decline, losing 15.8% of its value to trade at $2,602. Other major cryptocurrencies, such as XRP, Dogecoin, and Cardano, also suffered significant losses.

The overall cryptocurrency market capitalization contracted by approximately 14% over the weekend, falling to $3.08 trillion. This movement coincided with the largest liquidation event in crypto history, with total liquidations surpassing $2.2 billion in just 24 hours, according to data from Coinglass.

Market analysts have attributed the sell-off to a combination of stop-loss triggers and fading retail interest. The tariffs, which were anticipated, still managed to catch investors off guard, derailing Bitcoin's recent rally. The Crypto Fear & Greed Index, a key sentiment indicator, fell 16 points to a score of 44, sliding into the "Fear" zone for the first time since October 11.

Despite the market turmoil, some analysts remain optimistic about Bitcoin's long-term prospects. Jeff Park, Head of Alpha Strategies at Bitwise Invest, suggests that the tariffs might actually benefit Bitcoin in the long term by potentially weakening the U.S. dollar and driving investors toward alternative stores of value. However, economist Alex Krüger warns that aggressive tariffs typically have negative implications for risk assets and the broader economy.

Technical analysts are closely monitoring key support levels for Bitcoin, particularly as the price attempts to stabilize above the $95,000 mark. The next few trading sessions could prove crucial in determining whether the current price level