Categories: Techno

Bitcoin Falls: Trump's Trade Tariffs Hit Cryptocurrencies

The cryptocurrency market has plummeted after Trump imposed new trade tariffs on China, Canada, and Mexico. Bitcoin fell to $91,695, and Ether lost 22.7% of its value as investors fled riskier assets.

Bitcoin has plunged 10% after Donald Trump imposed trade tariffs, causing panic in the crypto market. Investors began to get rid of risky assets amid the escalation of the trade war between the United States, China, Canada and Mexico.

Writes UNN with reference to Investing.

Bitcoin fell sharply on Monday, reflecting the general decline in cryptocurrency prices. Investors began to avoid risky assets amid US President Donald Trump's decision to impose trade tariffs on China, Canada and Mexico.

The crypto market plunge came as Wall Street futures fell more than 1.5% as traders braced for an escalation in the trade war. Trump imposed 25% tariffs on imports from Canada and Mexico, as well as a 10% tariff on Chinese goods, prompting promises of retaliation from all three countries and further undermining confidence in risk assets.

Bitcoin fell 10% to $91,695.8, while Ether, the second-largest cryptocurrency, fell 22.7% to $2,434.84. The $TRUMP memecoin, which Trump launched in January, has lost more than 15%, falling to a record low of $16,349.

The tariffs have largely dampened the prospects for more favorable regulation of the crypto market under the new president. In addition, Trump's latest executive order to create a regulatory framework for cryptocurrencies has not aroused much enthusiasm among investors.

The trade restrictions have led to a general decrease in risk appetite in global financial markets, while strengthening the dollar, which has reached a near-month high. Demand for safe-haven assets, including gold, also rose, although the dollar remained the main focus for investors.

Analysts warn that the new tariffs could push up inflation in the US, dampen economic growth and reduce the likelihood of monetary easing by the Federal Reserve.

Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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