Significant volatility is currently gripping the global cryptocurrency market. Bitcoin, which recently reached a record high of $109,000, is experiencing a sharp downturn.
Business News: The global cryptocurrency market is experiencing extreme volatility. Bitcoin, which recently reached a record high of $109,000, is now undergoing a steep decline. Its price has currently fallen by 25% from its peak, dropping below $80,000. US President Donald Trump's policies are being cited as the primary cause of this decline, creating confusion among investors.
What is causing the cryptocurrency market crash?
The Bitcoin crash began after Donald Trump announced on March 4th the imposition of a 25% tariff on Mexico and Canada, and a 10% tariff on China. This move has increased uncertainty in the global business environment, causing investors to move away from riskier assets. This directly impacted cryptocurrencies, leading to a sharp drop in the prices of Bitcoin and other digital currencies.
According to CoinMarketCap, Bitcoin fell 25% to $79,525.88 during Asian trading hours on Friday. At 9:50 AM Indian Standard Time, it was trading at $80,078.76, down 5.47%. This represents its lowest price since November 11th.
Other Cryptocurrencies Affected
Along with Bitcoin's decline, other major cryptocurrencies have also been impacted. Digital currencies like Ether, Solana, and XRP have also seen significant price drops. Market experts attribute this cryptocurrency crash to growing concerns about the US economy and the unstable policies of the Trump administration.
According to Stefan von Hanisch, Director of OTC Trading at Bitgo, "The market expected the Trump administration to introduce a coherent policy on cryptocurrencies, but so far, there has been no clear plan from them. This has created confusion among investors, and they are hesitant to take risks."
Stock Market Also Takes a Hit
The impact of this cryptocurrency market crash is also being felt in the traditional stock market. The S&P 500 index has also experienced a sharp decline. Weak consumer confidence data in the United States is further eroding investor confidence. All eyes are now on the Trump administration's next move. Crypto experts believe that if the Trump administration doesn't quickly introduce a clear policy, Bitcoin's price could fall further. Some analysts believe it could drop to $75,000.
