Crypto Market Faces Uncertainty: The Real Impact of Trump’s Trade Policies
Crypto market has experienced a significant downturn in the last 24 hours, with sentiment shifting from Neutral to Extreme Fear, as indicated by the Crypto Fear & Greed Index. On February 25, the index dropped by 24 points to a score of 25, marking a sharp move into “Extreme Fear” territory. This decline follows broader market volatility, linked to a series of comments made by US President Donald Trump regarding his planned tariffs on Canada and Mexico.
Trump’s Tariffs Impact on Crypto Sentiment
President Trump reiterated during a February 24 press conference with French President Emmanuel Macron that his controversial tariffs on Canada and Mexico were “going forward” as originally planned. The 25% tariffs on imports from these countries, set to be implemented next month, have had a negative impact on market sentiment, triggering a wave of uncertainty in global financial markets, including cryptocurrencies.
The announcement has caused a ripple effect across markets, with Bitcoin (BTC) witnessing a sharp decline, falling from around $105,000 to just above $92,000. Ethereum (ETH) also faced significant sell-offs, with more than $2.2 billion worth liquidated. The threat of retaliatory tariffs from Canada and Mexico, coupled with concerns over a potential trade war, has rattled investor confidence.
Crypto Market Falls Alongside Broader Market
The crypto market capitalization dropped nearly 8% in just 24 hours, falling from $3.31 trillion to around $3.09 trillion, reflecting the broader trend of market contraction. Meanwhile, the US stock market has also faced a decline, with the S&P 500 down by 2.3% and the Nasdaq Composite dropping 4% over the last five trading days. This downturn in both traditional and crypto markets highlights how global economic concerns continue to impact investor sentiment.
In conclusion, the crypto market is facing significant volatility, as President Trump’s tariff plans continue to stir uncertainty. Investors should remain cautious and aware of the ongoing economic shifts, which are impacting market confidence across both traditional and cryptocurrency assets.
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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