The crypto market is facing unexpected turbulence amid Donald Trump’s recent strong statements on trade relations with China. As Bitcoin, Ethereum, and other cryptos plummet, many attribute this to a potential return of the trade war. Could the U.S. policy trigger a new crash in the market?
Written by Hugo Le follézou
Translated on April 7, 2025 at 11:14 by Sarah
Since the beginning of 2022, and more recently with Trump ‘s announcements, the cryptocurrency market has been experiencing a significant downturn. Bitcoin has lost over 60% of its value, dropping from $47,000 to just $17,000 by June. Other major cryptos like Ethereum and Solana have faced similar fates, experiencing dramatic plunges.
🚨 BREAKING: The crypto selloff continues with Bitcoin falling below $79,000 and Ethereum about to break under $1,600. Solana at the $100 psychological stronghold. pic.twitter.com/t0g2CLSEPo
This sharp correction follows the announcement by the American president Donald Trump of a new series of tariffs on Chinese imports. A decision with significant consequences for the global economy. It has caused a shockwave in the financial markets. In this context of uncertainty and extreme volatility, cryptocurrency investors have massively abandoned the sector, opting to seek refuge in safer assets.
Several factors explain this dramatic collapse of the crypto market. Firstly, cryptocurrencies are seen as risky assets, whose value fluctuates significantly in times of economic instability. Faced with the trade war initiated by Trump, investors preferred to disengage from these investments deemed too volatile.
BREAKING: Circuit breakers have been triggered in Japan's Nikkei 225 and TOPIX stock market indices.
We are seeing the market's first circuit breakers since March 2020. https://t.co/STlqrVo2NQ
Furthermore, the global economic slowdown resulting from trade tensions has a direct impact on the fundamentals of the crypto market. The drop in demand and liquidity weighs on prices, leading to a real panic among cryptocurrency holders.
REPORTER: "Is there pain in the market at some point you're unwilling to tolerate?"@POTUS: "I think your question is so stupid. I don't want anything to go down, but sometimes you have to take medicine to fix something — and we have been treated so badly by other countries." pic.twitter.com/09QBmfqzYF
Lastly, there is the prospect of a monetary tightening by the Federal Reserve. It is gradually raising its interest rates, which also contributes to destabilizing the sector. Investors are moving away from riskier assets, like cryptos, towards safer investments.
Facing this chaotic situation, many experts are questioning the future of the cryptocurrency market. Some even anticipate a similar crash to that of 2018 when Bitcoin had lost almost 80% of its value.
However, other observers remain more optimistic and believe that this sharp decline is only temporary. They argue that the long-term adoption of cryptocurrencies, driven by new applications and use cases, will eventually prevail over cyclical turbulence.
Regardless, the crypto market remains extremely volatile and sensitive to geopolitical and macroeconomic uncertainties. Investors are therefore urged to exercise utmost caution in such an uncertain context. If you are looking for a reliable platform to invest in cryptos, we recommend the Weex platform. Currently, you can benefit from an attractive offer upon signing up.
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