Tariff Tensions Trigger Crypto Market Sell-Off
By Manoj Dharra
Why Cryptocurrency markets are down
Impact on Global markets and commodities
Intensity of Trump tariff going forward
Global financial markets are witnessing an extreme panic sell-off not seen since the peak of the COVID-19 crisis in March 2020. From crashing stock futures to collapsing oil and even gold prices, every major asset class is flashing warning signals. Currently, the cryptocurrency market is following the trend in the US stock market. All eyes are on the crypto market. The big question is: Will it support investors to overcome this market uncertainty?
What has happened in last 2-3 trading sessions
1) Since the start of April 3, the S&P 500 index has declined by nearly 7.62%, and the Nasdaq 500 has dropped by 7.30%
2) Oil tumbles further as US-China trade conflict fuels recession fears. The Brent and WTI benchmarks both dropped to their lowest since April 2021 at near $63 a barrel
3) Gold Prices Tank by 3.5% at $3030 as Investors Flee to Cash in order to protect their assets from the impact of a potential market decline.
4) A recent report revealed that the Magnificent 7 index – an index representing the performance of major tech companies such as Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla – plummeted by 30%. This also indicates that investors are pulling out of risky sectors.
Almost all gains since Donald Trump’s election win have vanished, with the total market cap dropping 10% to $2.54 trillion.
Bitcoin falls below $74,400!
The world’s leading cryptocurrency sheds over 10%, while Ether drops 20%, trading at $1,430.
Investors have been increasingly retreating from riskier assets, including cryptocurrencies, driving Bitcoin’s sharp decline.
Other cryptos in freefall! XRP, BNB, SOL, and DOGE see declines between 11% and 20%.
The crash has been further fueled by a sharp sell-off in U.S. equities, directly linked to the new global tariffs imposed by former President Donald Trump just days ago. This move has added to the market’s uncertainty, triggering widespread panic and liquidation across crypto assets.
Coinglass data show about $1.2 billion worth of bullish crypto wagers were liquidated in the past 24 hours, the most since early December.
More losses ahead? Options markets signal that selling pressure may continue as the downturn deepens.
JPMorgan CEO Jamie Dimon cautioned investors that the turmoil caused by US tariffs and a global trade war could slow growth, spur inflation and potentially lead to lasting negative consequences. Elsewhere, Goldman Sachs has raised the odds of a US recession to 45% in the next 12 months, joining other investment banks in revising their forecast.
Oil prices slid more than 3%, extending last week’s losses, as escalating trade tensions between the US and China stoked fears of a recession that would reduce demand for crude.
Outlook: Analysts have cautioned that macroeconomic deterioration could push prices even lower, reinforcing the view that the sell-off extends beyond crypto to broader risk assets.
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