Global Markets Plunge 5.4% Amid Tariff Policy Uncertainty

Global markets are experiencing an unprecedented selloff across all major asset classes, including stocks, oil, and gold. This phenomenon, described as a "rush to the exit," has investors converting their holdings into cash en masse. The cryptocurrency market, which has declined by 5.4% in the last 24 hours, is not immune to this trend.

The aggressive tariff policy has triggered severe market turmoil, affecting even traditionally safer assets due to heightened uncertainty. Major indices such as the S&P 500 and Nasdaq 100 have seen significant drops, with the S&P 500 falling by over 4.031% and the Nasdaq 100 declining by 5.23% in a single day. The price of WTI Crude Oil, which was around $71.34 at the start of the month, has slipped by over 18.76%. Similarly, the gold market has decreased by 2.48%, indicating that no asset class is spared from the selling pressure.

Historically, during market uncertainty, investors typically move from risky assets like stocks to safer assets like gold. However, the current market conditions are unusual, as all asset classes are falling simultaneously. This behavior is indicative of a panic-driven liquidation, where investors are selling all assets to hold cash.

The cryptocurrency market has not been spared from this liquidation wave. Top cryptocurrencies such as Bitcoin, Ethereum, XRP, BNB, Solana, and Dogecoin have all experienced declines. Bitcoin has slipped by 2.6%, Ethereum by 6.5%, XRP by 2.0%, BNB by 0.9%, Solana by 1.5%, and Dogecoin by 1.9%. Despite these declines, the total cryptocurrency market cap stands at least 1.25% above its opening value. The market cap of cryptocurrencies excluding Bitcoin has grown from $875.85B to $884.44B, and the market cap of cryptocurrencies excluding the top ten has climbed from $188.51B to $192.9B.

This rise in the total crypto market cap, especially among altcoins, suggests underlying buying interest. While fear grips global markets, savvy investors may see this correction as a rare entry point. As traditional safe havens like gold also fall, crypto remains volatile but resilient. The coming days will test whether it acts as a risk asset or a refuge.