Crypto Prices Plunge: Tariff Wars Push Bitcoin and Ethereum Lower
Crypto Prices Plunge – On April 6, cryptocurrency prices took a sharp downturn as US stock futures opened significantly lower, reflecting growing uncertainty caused by the Trump administration’s decision to double down on its global tariff strategy. The administration imposed a 10% tariff on all foreign countries starting April 5, with higher rates for specific countries: China at 34%, the European Union at 20%, and Japan at 24%. This aggressive tariff escalation has stirred significant volatility across global markets, including cryptocurrencies.
Bitcoin and Ethereum Suffer Losses
Bitcoin (BTC) dropped more than 6% in the last 24 hours, falling to around $75,087. Meanwhile, Ethereum (ETH) experienced a sharp 12% decline, trading at $1,449, according to CoinGecko data. The total cryptocurrency market cap shrank by over 8%, hitting $2.5 trillion. However, by April 7, both assets showed some recovery. Bitcoin rebounded 1.4%, trading around $78,500, while Ethereum regained some ground, climbing to $1,594. Despite these slight gains, the Crypto Fear & Greed Index showed an extreme fear level of 23, indicating investor anxiety about the market’s direction.
Market Manipulation and Tariff Impacts
Charlie Sherry, head of finance at BTC Markets, noted that the Sunday market conditions, which tend to be more illiquid, likely exacerbated the price drops, with large sell-offs having a disproportionate effect. The tariff-induced macroeconomic uncertainty is causing traders to rethink their positions, though some analysts like Arthur Hayes of BitMEX speculate that the market may see a Bitcoin rally despite the tariff uncertainty.
US Stock Futures Hit Hard
The US stock futures market mirrored the crypto market’s losses, with S&P 500 futures dropping nearly 4%, and the Nasdaq and Dow Jones Industrial Average futures experiencing significant declines as well. Experts from Kobeissi Letter indicated that the S&P 500 is entering bear market territory, while venture capitalists like Tom Dunleavy warned this could be the worst three-day stock move in history.
As the US administration continues to push forward with its tariff strategy, global markets remain on edge, leaving investors uncertain about the near-term future.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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