Cryptocurrencies fell by an average of 20-30%

At the beginning of the week, the cryptocurrency market suffered significant losses, with bitcoin falling to its lowest level in three weeks. Investors reacted to the growing risk of a trade war, which led to a massive sell-off in financial markets. Writes UNN with reference to Reuters.

Bitcoin, the world’s largest cryptocurrency, hit a three-week low of $91,441.89 overnight, and as of 09:41 GMT, its value was $95,730.35, down 6.2% from the previous day. Ether, the second-largest cryptocurrency by capitalization, suffered an even bigger decline, losing almost 25% of its value in three days, the largest decline since November 2022. Its last price was $2,592.14.

The collapse of cryptocurrencies occurred after US President Donald Trump imposed a 25% duty on imports from Mexico and Canada, as well as 10% tariffs on goods from China. In response, Canada and Mexico promised countermeasures, and China announced its intention to appeal these decisions to the World Trade Organization.

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According to CoinGecko, more than 25% of the 100 largest cryptocurrencies have experienced a 20% or more drop in value over the past day. Shares of the cryptocurrency exchange Coinbase (COIN.O) also lost 5.5% in the previous trading.

The market remains volatile as it operates around the clock and remains sensitive to general market sentiment. Investors fear that the new tariffs will have a negative impact on economic growth, corporate profits and inflation.

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Market experts have different opinions on the reaction of cryptocurrencies to the crisis. According to Chris Weston, head of analytics at Pepperstone, cryptocurrencies are the main indicator of market risks, especially on weekends. At the same time, Joseph Edwards of Enigma Securities notes that bitcoin is falling more slowly than ether, as investors often perceive it as a “risk-free asset” similar to gold.

Recall 

The cryptocurrency market plummeted after Trump imposed new trade duties on China, Canada, and Mexico. Bitcoin dropped to $91,695, and Ether lost 22.7% of its value due to the outflow of investors from risky assets.