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- Trump’s new tariff announcement could be the cause of the market dump.
- Trump says 25% tariff will go ahead for Canada and Mexico.
- This move led to growing FUD sentiment and panic selling.
The crypto market just experienced a brutal market dump with $110 billion being wiped out in the last 24 hours. This dump saw the price of Bitcoin (BTC) plummet to almost $90,000 while the prices of altcoin also took a tumble. One big reason behind the dump could be due to Trump’s new tariff announcement.
Trump’s New Tariff Announcement
As we can see from the post above, the reason behind the $110 billion market dump is being attributed to the President of the United States of America’s latest policy announcement. In detail President Donald Trump that 25% tariffs on Canada and Mexico will go forward. This means that all imports and exports between Canada and Mexico will now face a 25% tariff.
The fact that this announcement led to a brutal crypto market dump is a great example of how the economy across the world can affect financial economics across various industries. Not long ago, the fall of stock market prices led to a crash in crypto market prices. What’s more, the state of market sentiment also influences market prices.
FUD Sentiment Takes Over the Crypto Market
Currently, the Crypto and Bitcoin Fear & Greed Index point to Fear and Extreme Fear sentiments. This means even the smallest hint of FUD could gravely affect the crypto market and Trump being a huge factor that influences financial markets, especially the crypto market, his actions could highly affect the crypto sphere.
The responses to the post either refuses to believe that this could be one of the biggest reasons behind the dip while others remain unsurprised that Trump’s decisions have affected crypto prices. A handful of responses show frustration at the fickle nature of traders and holders who make weak decisions based on FUD.
