Market Shockwaves as Trump’s China Tariffs Hit Crypto
The cryptocurrency market faced severe turbulence on Friday as XRP and Dogecoin (DOGE) plummeted over 10%, leading widespread losses triggered by former President Trump’s announcement of fresh tariffs on Chinese imports. This development adds another layer of complexity to an already challenging week for digital assets.
Key Market Impacts:
- Bitcoin (BTC) dropped 7% to $79,000, down 30% from January peak
- Overall crypto market cap fell 8% to $2.7 trillion
- Ether (ETH), Cardano (ADA), and BNB declined by 9%
- Chinese stocks slumped following 10% tariff announcement
The market downturn comes amid growing concerns over ETF outflows, which hit record levels last week. Despite Nvidia’s strong earnings report, the broader market sentiment remains bearish as global equities struggle with renewed trade tensions.
China Factor: A Critical Catalyst
The new 10% tariff on Chinese imports compounds existing economic pressures, including:
- Property market crisis in China
- Deflationary concerns
- Potential impact on AI-driven market growth
- Upcoming National People’s Congress meeting
Market analysts suggest that China’s response at next week’s National People’s Congress could serve as a crucial catalyst for crypto prices. Augustine Fan, head of insights at SignalPlus, notes that “liquidity has been depleted from numerous memecoin runs” while bearish sentiment reaches near-term extremes.
Technical Outlook
The market shows several concerning signals:
- Options traders shifting from calls to puts
- Increased volatility in lower timeframes
- MicroStrategy (MSTR) down 10%, adding BTC pressure
- Support levels under serious test
Source: CoinDesk