Crypto Market Drops 6% as Trump's Trade Policy Causes Concern

Amid global economic instability, the cryptocurrency market has witnessed a sharp decline with a 6% drop in just one day. President Donald Trump's new trade policies, imposing tariffs on major trading partners such as Canada, Mexico, and China, have raised concerns about the possibility of an economic recession, thereby deeply affecting investor sentiment worldwide. Impact on the Financial Market Since Trump's reelection on November 5, the S&P 500 index has dropped by about 3%, reflecting investors' pessimism amid trade tensions. This decline has not only affected the traditional stock market but has also strongly impacted the cryptocurrency market. Prominent Changes in Currencies Bitcoin: The leading currency has dropped by 3.4%, reaching around 79,415 USD. Ethereum (Ether): Price dropped sharply by 9.4%, down to 1,963 USD. Dogecoin: Recorded a 10% decrease while XRP also dropped by 6.5%. These numbers show that, despite differences in the extent of decline, all types of digital assets are heavily impacted by the market psychology shock caused by new trade policies. Wave of Serious Liquidation According to data from CoinGlass, in the past 24 hours, the total value of liquidation in the crypto market has exceeded 939 million USD, affecting more than 331,426 traders. Specifically: Bitcoin tops the list with 315.44 million USD in liquidation. Ethereum follows with 245.90 million USD. Other currencies such as XRP, Dogecoin, and SOL also suffered heavy losses, with liquidation amounts reaching 36.91 million USD, 29.14 million USD, and 47.81 million USD respectively. These numbers indicate strong selling pressure from investors, believing that the current economic situation does not show signs of short-term improvement. Expert Analysis Agne Linge, Head of Development at WeFi, believes that the crypto market is still showing a "risk-on" trend - investors are aware of the risks but continue to trade. Despite the announcement of the establishment of a Bitcoin reserve to stabilize the market, continuous sell-offs have occurred since March 3rd. Moreover, Ruslan Lienkha, the Market Director of YouHodler, believes that the pessimistic sentiment in the US stock market and concerns about economic recession are putting strong pressure on both traditional and cryptocurrency markets. He warns that if this trend continues, the correction phase could extend into a medium-term downtrend. According to him, although Bitcoin has the potential to become a safe-haven asset in the future, it is currently perceived as a high-risk asset and overreacts to market sentiment fluctuations. Prospects and Future Expectations In the context of the global financial market still full of fluctuations, investors are waiting for the next steps of the trade policy from the Trump administration. Policy changes can have ripple effects on many economic sectors, and despite efforts to stabilize, the risks from macroeconomic factors remain significant. Additionally, the close connection between traditional markets and the cryptocurrency market means that any volatility in either sector can lead to a domino effect globally. Conclusion Recent events have shown that the cryptocurrency market cannot be separated from the macroeconomic and political context. Trump's new trade policies are creating a strong wave of concerns, leading to large sell-offs and liquidations, directly affecting the value of digital assets. In this context, investors need to closely monitor developments in trade policies and the global economic situation to make timely and appropriate investment decisions.