Why is crypto down today? Trump tariffs, market volatility trigger sell-off

Crypto continues to fall – what leads to the accident, and what is the next one?

Bitcoin (BTC) fell below $ 88,000, marking its lowest level in three months. The wider market of cryptography has also taken a hit, with total market capitalization deducing at 8%, going from more than 3.31 billions of dollars to around $ 3.09 billions of dollars.

The sharp decline comes In the midst of macroeconomic uncertaintyregulatory concerns, and Feeling of changing investors. Analysts now warn that bitcoin could drop more, potentially Support test at $ 70,000.

Despite this, Bitcoin performed better than other cryptocurrencies like XRP (Xrp), Ghost (GHOST), and others, lowering more than 15% in the last 7 days, according to Crypto.News data.

“The destruction of cryptography here is mainly outside Bitcoin,” said Mark Cudmore on Bloomberg TV. “Bitcoin is a relative outperformer.”

Several factors could contribute to the last drop in bitcoin.

Crypto reacts to Trump prices

The immediate trigger for the drop in bitcoin seems to be the American president Donald Trump confirmation new prices On imports from Canada and Mexicoas well as a 10% price on Chinese products. Investors have reacted negatively, fearing an increase in inflation and economic uncertainty, which pushed risk assets like Bitcoin below.

Three weeks ago, Trump announced prices, causing the fall of bitcoin From $ 105,000 to a hollow of $ 91,441, the cryptography market has decreased by almost 10%. Trump’s confirmation of these prices seems to shake the markets again.

Correlation with traditional markets

The Bitcoin price movement began to reflect traditional financial markets. The S&P 500 fell 2.3% in the last five days of negotiation, while the NASDAQ composite dropped by 4%.

Alpha report of February 24 of Bitfinex highlighted which worsen American relations and restrictions on the exports of semiconductors, in particular Nvidia Chips contributed to the decline in investor confidence.

Flourish

Historically, net price oscillations have defined Bitcoin and Crypto market cycles, but traders are now confronted with a period when momentum seems to be fading.

“There was a collapse of volatility recently,” said Cudmore. “There was an early alert sign that Bitcoin’s next major collapse was probably imminent.”

The drop in volatility has left certain cautious merchants, such as periods of Low price often precede acute eruptions – up or down. Bitcoin is struggling to find a direction, some fear that the current lull prepares the ground for a deeper correction.