The crypto market experienced a decline on Sunday, with Bitcoin falling over 2%. This drop was attributed to concerns over the US China tariff tensions. Bitcoin dropped to $83,482 during Asian trading hours, while other altcoins like Ethereum also saw a dip in their prices. The worries stemmed from the possibility of new tariffs affecting Chinese tech products such as phones, semiconductors, and laptops.
In a post on Truth Social, former US President Donald Trump mentioned that some electronics were temporarily excluded from the new tariffs, but they would still face a separate 20% tax. He also emphasized that no country would be exempted from tariffs for unfair trade practices, specifically mentioning China. Commerce Secretary Lutnick hinted that more electronics-related tariffs could be expected in the coming months. While stock markets reacted positively to the temporary delay on tariffs, the crypto market did not show the same strength.
According to Greg Cipolaro, the head of research at NYDIG, crypto has not shown any signs of strain despite the uncertain times. Last week, the markets were stable due to traders anticipating rising prices, but this optimism faded due to rising global tensions and a slowdown in institutional flows into US crypto ETFs. Additionally, expectations for an early Fed rate cut before June have decreased, mainly due to concerns over Trump’s tariffs causing higher inflation. If the interest rate remains high, crypto assets could continue to struggle. Experts suggest that if Bitcoin falls below the $81,000 level, it could trigger more selling and increase market pressure.
Currently, Bitcoin is trading at $84,359, up over 9% in the past week but down 22.5% from its January peak. Ether is struggling to reclaim the $1,700 level, while XRP is at $2.13, up over 20%. Solana has seen an impressive 30% increase in the past week but a slight decrease in the past day. The Mantra token (OM) experienced a significant drop of over 90% on Sunday, raising concerns about centralized exchanges and the stability of RWA tokens.
The crypto fear and greed index, which measures market sentiment, is currently at 29, indicating fear but showing improvement from the extreme fear witnessed last week.
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