Crypto Majors Surge Up to 20% Before Dipping on Tariff News
Major cryptocurrencies experienced fluctuations, peaking at a 20% increase before reversing. This followed a profitable buy-the-dip strategy after Monday's $2.2 billion market movement. Gains diminished as China announced retaliatory tariffs on the U.S.
- The U.S.-China tariff conflict may reduce risk appetite for assets, impacting positive sentiment in the crypto market.
- XRP, DOGE, SOL, and ADA rose nearly 3%.
- Bitcoin and Ether increased nearly 4%.
- Traders are uncertain about the long-term effects of China's actions, with potential for further drawdowns if tensions escalate.
- Tariffs have prompted interest in dollar-backed stablecoins as hedges against economic uncertainty.
- The imposition of tariffs may lead to a broader trade war, increasing volatility in the crypto market.
Donald Trump's tariff decisions caused significant declines in bitcoin and equity markets, shifting focus from pro-crypto policies to economic consequences.