Crypto Crash Explained: How Trump’s Trade War Affects Bitcoin, XRP, and DOGE
The world of cryptocurrencies has been shaken recently, with big names like Bitcoin, XRP, and DOGE losing a lot of value. This sudden drop comes just after President Donald Trump made some big moves in his trade war, which has caused a lot of worry in the global money market. Let’s find out more about this crypto crash and how Trump’s actions are affecting the digital currency world.
Trump’s Trade War and Its Impact
President Trump decided to put extra taxes, called tariffs, on goods coming from Canada, Mexico, and China. These tariffs are as high as 25% and have not only affected the usual markets but also the crypto market. People are worried about a bigger trade war, so they’re moving their money to safer places instead of risky assets like cryptocurrencies.
The Crypto Market’s Big Drop
The crypto market has lost over $500 billion in just a few days. Many popular cryptocurrencies have lost a lot of their value. For example, XRP went down by 17%, losing all the gains it had made after Trump said he wanted to use it in a new U.S. crypto reserve. Cardano (ADA) and Solana (SOL) fell by about 25% and 20% respectively. Bitcoin, which had briefly gone over $94,000, fell back to around $83,700, losing nearly 10% of its value.
Why People Are Moving to Safer Investments
The trade war has made people worried about the economy slowing down, so they’re moving their money to safer places. This means they’re selling risky assets like cryptocurrencies and stocks.
Trump’s Crypto Reserve Announcement
At first, when Trump said he wanted to create a Crypto Strategic Reserve, crypto prices went up a lot. But this good feeling didn’t last long because the tariffs announcement made people worry more, and crypto prices went down again.
What’s Next for Crypto?
The recent crypto crash shows how connected the global money market is and how political decisions can affect digital currencies. The future of cryptocurrencies is uncertain, and investors are expecting more ups and downs. How the crypto market recovers will depend on what happens with these geopolitical issues.
Sources:
www.newsday.com, www.fastcompany.com, www.globalplayer.com, www.wisbar.org, www.cryptobriefing.com