Bitcoin slides below US$100,000 as Trump’s tariffs rattle markets
Cryptocurrency prices have fallen sharply as fears of a global trade war prompt investors to retreat from risky assets. Bitcoin dropped 4% to a three-week low of approximately US$96,606, while ether experienced a more significant decline of about 12%, reaching levels not seen since early November.
The downturn follows US President Donald Trump's announcement of new tariffs, imposing 25% on imports from Mexico and Canada, and 10% on goods from China, effective Tuesday. This news has heightened market sensitivity, especially in the cryptocurrency sector, which operates continuously and often reflects broader market sentiment. Analysts suggest that the introduction of tariffs could negatively impact economic growth and corporate profits, leading to increased caution among investors.
As cryptocurrencies are viewed as a risk proxy during turbulent times, they often react strongly to negative news. Chris Weston, head of research at finance broker Pepperstone, explained that cryptocurrencies serve as a means for investors to express their risk appetite, particularly over weekends when traditional markets are closed. This behavior underscores the volatile nature of digital currencies in response to geopolitical and economic developments.
via SCMP Full Text Feed
Cryptocurrency prices have fallen sharply as fears of a global trade war prompt investors to retreat from risky assets. Bitcoin dropped 4% to a three-week low of approximately US$96,606, while ether experienced a more significant decline of about 12%, reaching levels not seen since early November.
The downturn follows US President Donald Trump's announcement of new tariffs, imposing 25% on imports from Mexico and Canada, and 10% on goods from China, effective Tuesday. This news has heightened market sensitivity, especially in the cryptocurrency sector, which operates continuously and often reflects broader market sentiment. Analysts suggest that the introduction of tariffs could negatively impact economic growth and corporate profits, leading to increased caution among investors.
As cryptocurrencies are viewed as a risk proxy during turbulent times, they often react strongly to negative news. Chris Weston, head of research at finance broker Pepperstone, explained that cryptocurrencies serve as a means for investors to express their risk appetite, particularly over weekends when traditional markets are closed. This behavior underscores the volatile nature of digital currencies in response to geopolitical and economic developments.
via SCMP Full Text Feed
