Crypto Market Plummets 5.46% Amid Trump Tariff Announcement

The global cryptocurrency market experienced a significant downturn, with the total market capitalization decreasing by 5.46% to $2.63 trillion. This decline was prompted by a widespread sell-off following the announcement by U.S. President Donald Trump of new tariffs on trading partners worldwide, raising concerns about global economic stability.

Bitcoin (BTC) was at the forefront of the decline, falling to $82,274.70, marking a 5.39% decrease in the past 24 hours and a 5.67% drop over the past week. Ethereum (ETH) also saw a notable decline, down 6.04% to $1,787.79. XRP faced a more substantial drop, falling 7.76% to $2.00. Binance Coin (BNB) was not spared from the downturn, slipping 2.94% to $588.96.

The market's slump was exacerbated by widespread losses across major altcoins. Cardano (ADA) struggled with a 9.25% drop, now sitting at $0.6315. Solana (SOL), Dogecoin (DOGE), Toncoin (TON), Chainlink (LINK), Polkadot (DOT), Avalanche (AVAX), Shiba Inu (SHIB), and Hedera (HBAR) all faced declines, with losses ranging from 4.83% to 11.18%.

Stablecoins like Tether (USDT) and USD Coin (USDC) remained relatively stable, showing little price movement as investors sought refuge in these less volatile assets.

The market’s Fear & Greed Index now sits at 24, indicating extreme fear among investors as the crypto sector reacts to the ripple effects of U.S. trade policy. With global markets under pressure, all eyes are on how digital assets will react in the coming days.

This broad sell-off highlights the sensitivity of the cryptocurrency market to geopolitical events and economic policies. The announcement of new tariffs by the U.S. President has sparked concerns about global economic stability, leading to a flight to safety and a sell-off in riskier assets, including cryptocurrencies. The decline in major cryptocurrencies like Bitcoin and Ethereum, along with significant drops in altcoins, underscores the market's vulnerability to external shocks.

The stability of stablecoins like Tether and USD Coin during this period of volatility is a testament to their role as safe havens within the cryptocurrency ecosystem. As investors seek to mitigate risk, stablecoins provide a reliable store of value, helping to cushion the impact of market downturns.

The Fear & Greed Index, which measures market sentiment, has dropped to 24, indicating extreme fear among investors. This sentiment is likely to persist as the market continues to react to the latest developments in U.S. trade policy and their potential impact on global economic stability. The coming days will be crucial in determining how the cryptocurrency market will navigate this period of uncertainty.