Crypto Market Plummets 11.32% Amid US Tariff Policy Uncertainty

The cryptocurrency market has experienced a significant downturn since the beginning of April 5, with an approximate 11.32% decline. This drop was particularly pronounced over the weekend, with a 7.16% slip. The market's instability has affected almost all major cryptocurrencies, with Bitcoin plummeting by over 9.5%, Ethereum by 17.3%, XRP by 20.5%, BNB by 9.9%, Solana by 17.4%, TRON by 5.7%, Dogecoin by 19%, and Cardano by 17.9%.

The market uncertainty caused by the aggressive US trade tariff policy has had a serious negative impact on the cryptocurrency market. The question remains whether this is a result of panic selling or the beginning of a deeper correction. At the start of April 5, the cryptocurrency market cap was around $2.65 trillion. By the end of April 6, it had dropped to $2.46 trillion, marking a 7.16% decline over the weekend. In the last 24 hours, the cryptocurrency market has declined by no fewer than 12.5%. Bitcoin and Ethereum have been particularly hard hit, with Bitcoin's price standing at $74,902.53, at least 45.52% below its all-time high. In the last 24 hours, Bitcoin has declined by nearly 9.5% and Ethereum by over 17.3%.

Since the start of April 5, the altcoin market has slipped by at least 14.29%, and the market cap of cryptocurrencies, excluding the top ten, has plummeted by almost 16.47%. Almost all prominent altcoins have suffered from the crypto market decline. In the last 24 hours, Ethereum has declined by 17.3%, XRP by 20.5%, BNB by 9.9%, Solana by 17.4%, TRON by 5.7%, Dogecoin by 19%, Cardano by 17.9%, Chainlink by 19.33%, Avalanche by 14.1%, Stellar by 19.3%, and Shiba Inu by 14.2%.

Reports reveal that in the last 24 hours alone, over $840 million worth of long positions have been liquidated. A liquidation process happens when an exchange forcefully closes a trader’s leveraged position due to the trader’s incapability to meet the margin requirements. According to reports, no fewer than 86% of futures bets were bullish, implying that traders were expecting prices to rise. Data shows that Bitcoin traders and Ethereum traders have lost $322 million and $290 million, respectively, as part of the latest liquidation development. Other major altcoin traders, including XRP traders and SOL traders, have faced a combined loss of over $80 million.

The bloodbath in the crypto market has been caused by global economic instability created by the aggressive tariff policy. Almost all major markets, including the US and Europe, have felt the negative consequences of the so-called “economic nuclear war.” In the last seven days, the US market has plummeted by over 7.84%, Europe by 7.88%, China by 7.10%, Japan by 13.25%, India by 6.67%, South Africa by 8.70%, and Australia by 6.86%. In the last 24 hours alone, the US market has dropped by at least 5.97%, Europe by 4.60%, China by 7.02%, Japan by 7.83%, India by 4.45%, and Australia by 4.23%. Investment leaders have warned the US government against triggering an “economic nuclear war” and advised the US President to take a “time out.”

In summary, the cryptocurrency market has experienced a significant downturn due to the aggressive US trade tariff policy, which has created global economic instability. This has led to a decline in the prices of major cryptocurrencies, including Bitcoin and Ethereum, as well as prominent altcoins. The liquidation of over $840 million worth of long positions in the last 24 hours further highlights the market's instability. The aggressive tariff policy has had a negative impact on major markets worldwide, leading to warnings from investment leaders about the potential for an “economic nuclear war.”