The entire cryptocurrency market turned red as almost all assets were recording a major drop in prices. The world’s largest cryptocurrency Bitcoin (BTC) wasn’t spared either. The king coin dipped below the coveted $100,000 mark causing chaos in the market. There are several reasons behind this bloodbath but the most pertinent one leads to Donald Trump, the President of the United States.
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Looking Into Bitcoin’s Latest Crash
Data from CoinMarketCap reveals that the leading cryptocurrency witnessed a 6.41% drop over the past 24 hours. At the time of writing, BTC was trading at $93,341.41. Earlier today, the king coin was priced at a high of $100,485.89
before dipping to a low of $91,242.89.
About 14 days ago, Bitcoin surged all the way to a high of $109,114.88. Following the latest downfall, the asset is currently 14% below this peak. In addition to this, data from Coinglass revealed that over the past 24 hours, a staggering $405 million positions were liquidated this included $340 million longs and $65.25 million shorts.
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How Is Donald Trump Responsible For This Crash?
Ever since Trump was sworn in, the Bitcoin market encountered several shifts in its price. It seems like along with the United States several other nations also faced heat from Trump. During this weekend, Trump levied 25% tariffs on Mexican as well as Canadian imports. In addition, a 10% tariff will be imposed on Chinese goods from Tuesday. China said it would contest Trump’s tariffs at the World Trade Organization. The other two countries also swiftly pledged punitive actions.
The fact that this trade war was impacting the price of Bitcoin came as a surprise. The king coin is usually considered a hedge against economic and other geopolitical calamities. But, the fact that the cryptocurrency market doesn’t shut down could be impacting the price of the king coin. Investors are concerned that tariffs may be inflationary and negatively impact business profitability and growth. Speaking about the same, Chris Weston, head of research at Pepperstone 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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