The crypto money market witnessed intense volatility on Monday, which was triggered by contradictory reports on US tariffs within the scope of US President Trump administration. Bitcoin increased from $ 75,000 to $ 81,000 before falling below $ 79,000. The marked volatility was mainly caused by market speculation that the White House could hold for 90 days.
Stems from the confusion expressions It was made by Kevin Hassett, the economic advisor of the president. In an interview, Hassett gave an uncertain clue about Trump that he could reduce tariffs and pointed out that the negotiations were a little flexibility. This statement increased the confidence of financial markets and sent Bitcoin and other digital currencies to collection sharply.
However, when the White House rejects these rumors, all these gains are short -lived and indicates that there is no information about any tariff pause. There was a guarantee that the tariffs would really pass as planned on April 9th.
Crypto and traditional markets immediately feel an effect
In the same way as Bitcoin, other crypto currencies fluctuated significantly. Ripple’s XRP coin rose from about 10% to $ 2 before the pump was reversed. Ethereum (ETH), the second largest of all crypto currencies, fell to $ 1,545.77, which was 13.7% lower than Trump’s first statement.
Even traditional markets exhibited similar irregular movements. Following Hassett’s comments, S&P 500 increased by 6% before rapidly erasing its earnings on the rejection of the rumor of the White House tariff. Collectively, Wall Street has fallen more than 11% since last Wednesday, which has caught the worries of investors around the world.
Crypto -related stocks also suffered significantly. Coinbase Global Inc. (Mine) fell to 4%and Microstrategy (MSTR), which holds a significant amount of Bitcoin, sank by 11%. Bitcoin mining stocks became even more difficult and the undisputed key to mining profitability, which has fallen more than 10%, fell to about $ 42.40.
The increase in the trade war increases long -term market risks
These market reactions show that investors are increasingly concerned about trade relations between the US and China. President Trump previously announced aggressive tariff measures, 10% tariff on the board of directors and higher tariffs in China. In contrast, China received a 34% tariff for imported US products, which has recently threatened Trump to apply 104% tariffs.
People’s daily pointed China has sufficient measures to respond to tariff aggression and is completely ready to confront the “US Tariff Bullying”. This interpretation showed that similar tensions were discussed after years of pressure from Washington.
Trump also claimed that there would be no agreement with China unless the country solved the problem of trade deficit in America. The authority added that if the EU and Japan cannot find a decision to address the bilateral trade deficit, he could experience more tariffs.
Trump’s tariff threats have proved to be costly for crypto money markets. Since the announcement was made last Wednesday, Bitcoin has fallen about 5.5% or $ 4,553. However, Ethereum saw a much sharper decline, which shows that more investors avoid risk in the field of subcoin. Ripple fell by about 7.7%, reflecting general market feelings for the same time. As the tariffs begin on April 9 tomorrow, analysts expect more volatility to take place.
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