Why are Bitcoin and Altcoins Falling? Here is the Latest Status in Cryptocurrencies - Coin Bulletin

The crypto market is in great uncertainty due to Trump's tariffs and China's retaliation plans, investors are anxious and prices are rapidly falling.

The recent sharp declines in the crypto market are due to the high tariffs imposed by US President Donald Trump and China's trade-related retaliation plans. These developments have led to a loss in value of Bitcoin (BTC) and other major altcoins.

In the last 24 hours, Bitcoin has decreased by 5.6%, falling below the $79,000 level. At the same time, major altcoins like Ether (ETH) and Solana (SOL) have also lost value in double digits. However, this decline was not limited to Trump's statements regarding trade wars. Claims that China is preparing economic retaliations in response to U.S. tariffs have also created significant uncertainty in the market.

Trump's trade wars and China's response

Trump's announcement that he would not make a trade deal with China has led to further tensions in global trade. This announcement created a significant negative impact on the markets. Trump stated that he would not make a deal without resolving the trade deficit with China and that as a result, large tariffs would come into effect. The new tariffs that Trump implemented last week for 180 countries shook the markets by increasing tariffs on China by 54%.

In response to these developments, China is reportedly considering accelerating economic stimulus and issuing a monetary warning to offset potential losses. The Chinese government's upcoming actions in relation to trade wars have exacerbated uncertainties in the global economy, especially affecting the value of Bitcoin and altcoins.

One of the reasons for the decline in the cryptocurrency markets is the large amount of liquidation that has occurred. According to Coinglass data, long positions in major cryptocurrencies such as Bitcoin and Ether have resulted in significant losses of 322 million dollars and 290 million dollars, respectively. Smaller altcoins have also been affected by this decline. In particular, Solana (SOL) and XRP experienced losses of up to 14%.

Panic selling and liquidations in the market have caused investors to flee from risky assets. Instead of exiting crypto, investors have turned to safer havens. These liquidations have further deepened the market disruption and initiated a new wave of price declines.

The effects of global uncertainty and decline in the crypto market

Global trade wars, particularly the economic tensions between China and the USA, have created significant uncertainty in the crypto market. Reports that China is working on monetary warning plans in retaliation to US tariffs have led to great unease in the markets. This situation has shaken investors' confidence in cryptos and triggered a major sell-off in the market.

Additionally, threats to the global economy and Trump's aggressive tariffs could lead to an economic "nuclear winter" scenario. Hedge fund billionaire Bill Ackman warned that if Trump further increases tariffs, the US economy will be seriously harmed and this could shake the global economy. Along with these threats, investors have shifted toward safer havens, thereby reducing interest in crypto.

The decline in Crypto currencies indicates that the markets could be dragged into more volatility. With the deepening tensions between China and the USA, investors seem to be ready to adjust their strategies according to new developments. Furthermore, after significant liquidations, it is also possible for the market to enter a new phase and recover in a way that reverses prices.

The increasing uncertainties in the global economy and the deepening trade wars may pose obstacles to a long-term recovery in the crypto market. Investors will have to closely monitor developments to see whether confidence in cryptocurrencies will be restored.

• The information contained herein does not constitute investment advice