Bitcoin Plunges to $92,000 as Trump Tariff Threat Sparks Crypto Sell-Off
Key Takeaways:
- Bitcoin fell over 3% to $92,000, with Ether and Solana dropping 4% and 5% respectively.
- The sell-off was triggered by former US President Donald Trump’s threat to impose tariffs on countries moving away from the US dollar.
- Analysts warn of continued volatility as the market digests the potential impact on global trade.
The cryptocurrency market faced a sharp correction on Monday, with Bitcoin leading losses after a political statement rattled investor confidence.
Market Reaction to Trump’s Tariff Warning
Former US President Donald Trump’s threat to impose tariffs on nations that de-dollarize sent shockwaves through risk assets. Investors interpreted the comments as a potential trigger for trade tensions and a flight to safety, leading to a broad crypto sell-off.
The world’s largest cryptocurrency, Bitcoin, fell over 3% in 24 hours to trade around $92,000. The decline marked a pullback from its record high of over $100,000 reached earlier this year, driven by strong institutional demand.
Altcoins Follow Bitcoin Lower
The downturn was not isolated to Bitcoin. Other major digital assets saw steeper declines:
- Ether (ETH): The second-largest cryptocurrency dropped over 4% to $2,800.
- Solana (SOL): Another popular asset slid more than 5% to $140.
Analysts Point to Uncertainty and Risk Aversion
Cryptocurrencies are typically viewed as high-risk assets and are often among the first to be sold when macroeconomic fears arise. The tariff threat introduced significant uncertainty regarding future global trade and economic growth.
“The market is reacting to the uncertainty created by Trump’s comments. Investors are worried that tariffs could lead to a trade war and hurt global growth,” said a cryptocurrency analyst.
Market observers expect volatility to persist in the near term as the situation develops.
Regulatory Context in India
Meanwhile, the Indian government’s stance on cryptocurrency regulation remains pending. Officials are currently drafting a bill to establish a framework for digital assets within the country, a development keenly watched by the local crypto community.
