Cryptocurrencies Drop Up to 13% as Bitcoin Nears $80,000
The latest blow to cryptocurrencies came after the U.S. tariffs on imports from Mexico and Canada took effect on Tuesday, alongside the doubling of levies on Chinese goods.
Cryptocurrencies extended their losses on Tuesday, March 4, plunging up to 13%, while Bitcoin (BTC) hovered near $80,000, according to Binance. Investors fear that the escalating trade war between the U.S. and its key partners could harm the global economy.
Following the tariff hikes, Beijing retaliated with additional levies on U.S. imports, while Canada and Mexico vowed countermeasures. The growing tensions now threaten nearly $2.2 trillion in annual bilateral trade among these nations.
Bitcoin Price Outlook
In this context, BTC, the market leader, dropped 7.9% to $82,707, while Ethereum slid 9.4% to $2,064. Other major cryptocurrencies suffered even steeper declines, with Solana falling 12.6%, Cardano dropping 12.3%, Dogecoin down 10.8%, and Ripple losing 8%.
The latest actions by President Donald Trump triggered a domino effect in the crypto market, sending Bitcoin and other digital assets tumbling. Amid heightened global uncertainty, investors have sought safe-haven assets to hedge against volatility.
Nasdaq Performance Impact
With Trump in his second term, delivering exactly the chaos he promised during the U.S. elections, Western investors are joining emerging market central banks in buying gold as an all-weather hedge.
The major Wall Street indexes tumbled, led by the tech-heavy Nasdaq, as investors feared that the escalating U.S. trade war with its partners could harm the economy.
The Nasdaq Composite has now fallen 10% from its all-time high reached on December 16.
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