Market commentary
Trump's sweeping tariff measures throw global markets into chaos. Stock indices in individual countries are experiencing their sharpest corrections since the 2008 financial crisis, and brokers are suspending trading. Bitcoin and the crypto markets are not immune to this Risk-Off phase. Since Trump's inauguration, the price of the largest cryptocurrency has fallen by around 30%.
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Markets unsettled by tariffs
The recent comprehensive tariffs introduced by President Trump, including a base tariff of 10% on all imports and higher rates for specific regions like China (34%), Europe (20%), and Japan (24%), have led to significant market volatility. The tariffs increase costs for businesses and consumers, while simultaneously threatening to disrupt supply chains. This is particularly true in key sectors such as technology and manufacturing. This uncertainty has caused a significant drop in stock prices, especially in countries that are heavily dependent on exports.
Although Bitcoin and cryptocurrencies are not directly affected by the tariffs, in uncertain "Risk-Off" times, investors are retreating from all volatile assets to protect their portfolios from potential losses. Accordingly, Bitcoin has dropped by -14.85% since Trump's "Liberation Day," when he announced the latest tariffs.
Altcoins suffer disproportionately
Alternative cryptocurrencies ("Altcoins") are suffering even more due to their illiquidity in the current market environment. While Bitcoin is still trading above previous highs, the total market capitalization of the entire crypto market has plunged from 3.75 to 2.35 trillion USD (-37.32%). As a result, the crypto market is trading significantly below its peak from 2021, at the level before Trump's presidential victory.
Within the last 24 hours alone, Altcoins have again dropped by double-digit percentages. Bitcoin led with a -8.80% decline, while the largest alternative cryptocurrency, Ethereum, plunged by -17.99%. As a result, it is approaching the lows from the bear market at 1,000 USD. The biggest losers of the day in the Top 20 include Ethereum, Dogecoin DOGE (-19.21%), XRP (-19.01%), and Stellar XLM (-17.90%). The losses were less severe for Unus Sed Leo (-2.84%), Tron TRX (-6.29%), and BNB (-9.41%).
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.
