Trump's Tariffs Shake Crypto Market, Wiping Out 130 Billion

The cryptocurrency crypto market suffered a sharp downturn last week, losing over 130 billion in market value as investors reacted to the imminent rollout of US President Donald Trump's new tariffs. Dubbed Liberation Day, the tariff measures, which will take effect this week, will impose higher duties on various imported goods.

Bitcoin BTC took a significant hit amid the growing uncertainty, falling below the 82,000 threshold and trading at around 81,700 as of Monday morning. This marks the seventh consecutive day of losses for BTC/USD, largely driven by fears over the broader economic repercussions of Trump's trade policies. A broader sell-off in U.S. stock futures has further contributed to market jitters.

Despite the negative sentiment, institutional investors continue to inject funds into Bitcoin, indicating sustained interest in the asset. However, market analysts remain divided on Bitcoin's short-term trajectory. Stockmoney Lizards predicts a potential bottom between 80,000 and 82,000, while veteran trader Peter Brandt has cautioned that BTC could see a bearish breakdown, pushing prices as low as 65,635.

XRP has also faced a steep decline, tumbling 40 from its multi-year peak of 3.40 and settling around 2.19. Even the U.S. Securities and Exchange Commission's SEC decision to drop its lawsuit against Ripple has failed to lift investor confidence. Analysts suggest XRP is currently consolidating, with support at 1.77 and resistance at 3.21. A breakout past 3.21 would be necessary to signal a renewed bullish trend.

The wider cryptocurrency market has also seen considerable losses over the past week. Ethereum ETH has dropped by 10.9, XRP by 15, Solana SOL by 10.1, and Bitcoin BTC by 5.9.