Cryptocurrency Market Plummets: Bitcoin and Ethereum Drop by 14% During Global Market Turmoil
The cryptocurrency market experienced significant upheaval as a result of the global economic turmoil caused by Trump’s tariff policies. The repercussions of the worldwide market instability, fueled by increasing macroeconomic uncertainties, concerns about a US recession, and the escalation of trade disputes, have also impacted the crypto sector. Leading digital currencies like Bitcoin and Ethereum plummeted by as much as 14%, reflecting the prevailing bearish sentiment in the market. This downturn has left no cryptocurrency untouched, with investors showing apprehension about the ramifications of the newly imposed tariffs.
Notable cryptocurrencies followed suit in this downward trajectory, with Ethereum witnessing a steep decline of nearly 13%, while Solana and Ripple also experienced drops of over 12% within a 24-hour period, underscoring the broader uncertainties prevailing in the market. Bitcoin, according to CoinMarketCap data, saw its price dip by 7.72% to $76,876, while Ethereum witnessed a substantial 14% decline to trade at $1,507. XRP’s price also took a hit, standing at $1.75 with a 17% decrease.
The market capitalization of Bitcoin suffered a significant blow, falling by 7.65% to $1.52 trillion. The CoinDCX research team highlighted the adverse effects of the ongoing uncertainty stemming from the imposition of new US trade tariffs, which has reverberated not only in the crypto realm but also in traditional stock markets, contributing to the downward trend.
In India, the domestic stock market witnessed a massive sell-off at the start of the week, with NSE Nifty and BSE Sensex opening over 3.5% lower, hitting the lowest levels in 10 months. This decline occurred amidst a broader global market crash, with Tokyo’s Nikkei 225 index dropping by nearly 8% at the opening, Australia’s S&P/ASX 200 tumbling over 6%, and South Korea’s Kospi falling by 4.4%. The BSE Sensex faced a substantial plunge of 3,939.68 points to reach 71,425.01 in the opening trade, while the NSE Nifty dropped by 1,160.8 points to 21,743.65.
The tumultuous state of the global financial markets can be attributed to Trump’s decision to implement reciprocal tariffs on various countries, with significant levies imposed on China, India, and the European Union. This move by the former US president sent shockwaves across American and international financial markets, resulting in the loss of nearly $6 trillion in the value of US stocks in recent days. The repercussions of these tariff policies have reverberated globally, contributing to the prevailing economic uncertainty and market instability.
