The whole cryptocurrency market was red, as the prices of almost all assets dropped dramatically. Bitcoin, the world’s biggest cryptocurrency (BTC), was not spared. King coin dropped below $100,000, causing market chaos. This bloodbath has several causes, but Donald Trump is the main culprit.
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Bitcoin Crash: What’s Behind it?
CoinMarketCap data shows that Bitcoin, the world’s leading cryptocurrency, has experienced a drop of 6.41% over the last 24 hours. BTC traded at $93,341.41 when this article was written. Today, the price of the king coins reached as high as $100,485.89
The price of the stock dropped to $91,242.89.
Bitcoin was at its highest level of $109 114.88, about 14 days before. After the recent decline, Bitcoin is now 14% lower than its peak. Coinglass’ data also revealed that in the past 24 hour, $405 millions worth of positions had been liquidated. These included $340 Million longs and $6525 Million shorts.
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What is Donald Trump’s role in this crash?
Since Trump’s inauguration, Bitcoin has experienced several price changes. Trump has also been a target for other countries, including the United States. Trump placed 25% tariffs in the past week on Mexican imports as well as Canadian ones. A 10% tax will also be applied to Chinese products starting Tuesday. China has said that it will contest Trump’s new tariffs in the World Trade Organization. Both other countries quickly announced punitive measures.
It was a shock to learn that the trade war had an impact on Bitcoin’s price. King coin is often considered to be a hedge for economic or geopolitical catastrophes. However, the fact the crypto market is not shutting down may have an impact on the price. Tariffs can be inflationary. This could negatively affect business profits and growth. Chris Weston of Pepperstone, the Head of Research, spoke on this topic. stated,
“Crypto is really the only way to express risk over the weekend, and on news like this crypto resorts to a risk proxy.”
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Source: watcher.guru
