“TARIFFS TALK LOUD, DIGITAL ASSETS BEND THE CROWD.”
Why are investors moving away from digital assets as gold hits record highs? Monday saw a decline in global digital asset markets due to a widespread risk-off movement in financial markets brought on by fresh concerns about U.S. tariffs.
Major digital assets fell as investors shied away from high-risk investments, while safe havens like gold reached all-time highs.
After trading near $98,000 last week, Bitcoin (BTC) dropped by almost 2.5%, momentarily challenging the $90,000 support level. Sharper decreases were observed in other top digital assets.
Solana (SOL) fell more than 6%, XRP dropped around 4%, and Dogecoin (DOGE) saw the steepest decline, sliding over 7% in the past 24 hours, according to Market Predict. Ether (ETH) also moved lower, down nearly 3%, hovering around the $3,200 mark.
The selloff came after U.S. President Donald Trump announced that the country would start imposing a 10% tariff on goods from eight European nations on February 1.
If no agreement is reached, the tax could increase to 25% by June. These comments rekindled worries about conflicts in international commerce and economic expansion.
The decline in global stocks was reflected in digital assets. Nasdaq futures in the United States dropped more than 1%, and European markets also declined. The performance of Asian markets was inconsistent.
As investors sought refuge, the price of government bonds increased, and gold and silver saw a surge.
Heavy liquidations were caused by market instability. Nearly $600 million in bullish bets were destroyed, primarily by long traders, according to Coinglass data. As traders used less leverage, open interest in bitcoin also decreased.
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