The encryption market stumbles amid the threats of customs tariffs and inflation concerns

2 days ago

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The encryption market stumbles amid the threats of customs tariffs and inflation concerns

The cryptocurrency market suffered from a sharp drop on Sunday, as Bitcoin declined to less than 82,000 dollars, which led to the elimination of billions of market value. The recession coincided with the losses of futures contracts in the United States, driven by the escalation of trade tensions and renewed inflation fears.

Bitcoin, which was at $ 88,000 last week, He decreased to 81,700 dollarsAnd thus shrink 2 % in the last 24 hours. Altcoins was more affected by the likes of Avalanche (Avax), Polygon (MATIC), near (near), and UNISWAP (UNI) decreased by approximately 10 %. The market value of the total encryption market decreased by $ 115 billion in a short time, causing investor concern.

Ethereum (ETH) He decreased to $ 1775 And hit the lowest point in nearly four years. Another reason for ETHEREUM’s decline is the lack of demand for funds circulating in ETH (ETH) that has not attracted any flows since March.

On the other hand, Bitcoin’s investment funds have received more than one billion dollars in the first two weeks, indicating that institutional investors are turning towards BTC from ETH.

The sale was not limited to encryption. S&P 500 and NASDAQ decreased by 2 % and 2.8 %, respectively, reflecting the invested uncertainty. The coding shares also achieved great success, With Microstrategy (MSTR), 10 % sink Coinbase (currency) decreases 7.7 %.

This decrease occurs before the new definitions by the United States, which will start on the second of April targeting car industries, pharmaceutical preparations and semi -conductors. Some experts have indicated that the risk of inflation may increase, which will affect the market in a negative way.

In this case, the withdrawal of institutional capital from the origins of risk affects both markets and traditional markets due to increased volatility. Thus, it is still possible to see that the relationship between bitcoin and stocks is still high, and this means that the broader economic factors will affect the price of bitcoin.