Altcoin Liquidity Decreased by 12% Following Trump’s Tariff Announcement
Recent market developments indicate a cautious sentiment among investors in response to geopolitical tensions, specifically U.S.-China tariff escalations. Key points include:
- Liquidity for the top ten altcoins decreased by 12%, while liquidity for ETH fell by 8%, signaling reduced risk appetite.
- China's commitment to retaliate against new U.S. tariffs may exacerbate market uncertainty.
- The correlation between crypto assets and traditional equities has increased, contradicting earlier expectations of crypto's immunity to such pressures.
- Despite these challenges, investor sentiment within the crypto space remains relatively bullish compared to traditional markets.
Overall, investors are currently reassessing their strategies amid this volatile environment.