ETH, DOGE, XRP Plunge 6% Amid China-U.S. Tariff Dispute Escalation
Recent developments have resulted in significant fluctuations in the cryptocurrency market, with ETH, DOGE, and XRP experiencing downturns of approximately 6%. These declines come amid escalating tariff disputes between the United States and China, which have created a pervasive risk-off environment in global markets.
Market Overview
On Tuesday afternoon, Bitcoin traded below $112,000, reflecting a notable drop. This decline was influenced by China’s recent trade sanctions against U.S. entities, specifically targeting Hanwha Ocean, a South Korean shipbuilder. Such actions have reignited concerns regarding the potential escalation of the ongoing trade conflict.
Impact on Global Markets
The ramifications of these trade tensions were felt across various financial markets. Asian stocks experienced a sharp decline, leading to negative trends in U.S. and European equity futures. Key market indices reported substantial losses:
- S&P 500 futures: -0.7%
- Nasdaq 100 futures: -1%
- Japan’s Nikkei: -3% (worst session in two months)
In currency markets, the yen strengthened against the dollar, and traditional safe havens like gold and silver suffered losses in the latter part of the day. Meanwhile, the 10-year Treasury yields fell to around 4.03%, reflecting investors’ preference for safer assets.
Cryptocurrency Performance
In alignment with the risk-averse sentiment, cryptocurrencies fell sharply:
- Bitcoin: -3% (now at $111,869)
- Ethereum: -4% (around $4,000)
- BNB: -10%
- XRP, Solana, Dogecoin: -5% to -6%
Liquidations in the crypto market reached $630 million, with a significant portion attributed to long positions. This correction is part of a broader trend that began following U.S. tariff threats on Chinese imports last week, which previously triggered a historic liquidation event in the crypto space. Nearly $20 billion in positions were wiped out within 24 hours, according to Hyperliquid data.
Continued Volatility
The cryptocurrency market remains closely linked to broader macroeconomic risks. Despite a brief rebound earlier in the week, the latest downturn highlights the ongoing volatility. Traders are advised to remain cautious as the geopolitical landscape continues to evolve.
