Fire spreads to bitcoin: Cryptocurrencies join market plunge, shedding over 10%
Photo illustration shows a coin imitation of the Bitcoin crypto currency arranged beside a screen displaying a trading chart in Istanbul, Türkiye, on Nov. 22, 2024. (AFP Photo)
The cryptocurrency market was swept into the broader global sell-off on Monday, with bitcoin—the world’s largest digital asset—falling below the $75,000 mark amid mounting concerns over the escalating trade war.
The ongoing uncertainty around the potential fallout from the new trade measures triggered a wave of investor caution across risk assets, including digital currencies.
According to data from CoinMarketCap, the total global cryptocurrency market capitalization, including bitcoin, declined by approximately 10.58% over the past 24 hours, dropping to $2.39 trillion.
Bitcoin plunged more than 10% earlier in the day, trading around $74,980 as of 7 a.m. GMT. By 8:25 a.m. GMT, it had pared some of its losses, down 7.9% at $76,185.
Trump’s plans take toll on bitcoin
The price fall comes as traders digest the implications of Trump’s April 2 announcement that the United States would impose sweeping tariffs on goods from 185 countries. The move has sparked fears of a broad-based global trade war, with major economic players such as China and the European Union already announcing retaliatory measures.
Just days before the announcement, bitcoin had been trading around $87,000. Its current retreat represents a significant correction, raising questions about the resilience of the crypto market in the face of geopolitical and macroeconomic shocks.
Despite branding himself as a strong supporter of digital assets during his election campaign—vowing to make the U.S. the “crypto capital of the world” and proposing a “national Bitcoin reserve plan”—Trump has yet to meet the expectations of the cryptocurrency community. Bitcoin had hit an all-time high of over $109,000 on the day he took office.
Ethereum, the second-largest cryptocurrency by market capitalization, also suffered a steep decline. Its value dropped roughly 22% over the past 24 hours, falling to $1,421.
