Crypto faces market turmoil mid economic concerns
The cryptocurrency market has been rocked by significant declines in two of its flagship assets, Bitcoin and Ether.
This downturn reflects mounting concerns over broader economic challenges, including inflationary pressures and uncertainties surrounding Trump’s global trade tariffs.
Bitcoin, often seen as a digital gold and a hedge against traditional financial instability, saw its value dip below $80,000. Similarly, Ether, the second-largest cryptocurrency by market capitalisation, tested the $2,100 threshold, shaking investor confidence.
Cryptocurrency fear and greed index chart from CMC
The decline comes as central banks continue to grapple with persistent inflation, leading to speculation about further interest rate hikes. These economic conditions have raised fears that tighter monetary policies could dampen the speculative fervour that has long driven crypto markets.
In parallel, ongoing uncertainties about global trade tariffs have added another layer of complexity. Concerns about supply chain disruptions and escalating trade tensions have created a cautious environment for investors, spilling over into the volatile cryptocurrency sector.
While cryptocurrencies are no stranger to price swings, the current drop underscores their vulnerability to macroeconomic trends. As investors await clarity on inflation and tariff policies, the market could remain turbulent in the near term.
The resilience of Bitcoin and Ether will likely be tested as they navigate these economic headwinds.
Gold, however, has recently touched new all-time highs.
