Cryptocurrency favorite Trump crashes the market with his trade wars
3 February 16:06
Trump’s trade wars scared investors and caused a sell-off in financial markets. As a result, the cryptocurrency market collapsed on Monday, February 3, Komersant ukrainskyi reports with reference to Reuters.
Bitcoin, the world’s largest cryptocurrency, hit a three-week low of $91,441.89 overnight and stood at $95,730.35 as of 11:41 a.m. Kyiv time, down 6.2% for the day.
The smaller cryptocurrency Ether has lost almost 25% of its value since Friday, its biggest three-day drop since November 2022. The last quote was $2,592.14.
Last weekend, U.S. President Donald Trump imposed a 25% tariff on Mexican and most Canadian imports and a 10% tariff on goods from China, starting on Tuesday. Canada and Mexico, the largest trading partners of the United States, immediately promised to retaliate, and China announced that it would challenge Trump’s tariffs at the WTO.
After that, almost a quarter of the 100 largest cryptocurrencies lost 20% or more in value over the past 24 hours, according to CoinGecko. Shares of the American crypto exchange Coinbase fell by 5.5% in the pre-trade period.
Trump’s own cryptocurrency $TRUMP fell below $20. Launched shortly before Trump’s inauguration, the cryptocurrency hit a high of over $73 on January 19.
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Trump and cryptocurrencies
Bitcoin hit a record high of $107,071.86 on January 20, when Trump was sworn in as the 47th president of the United States, and has risen 40% since the election in early November on hopes of cryptocurrency-friendly regulation from the Trump administration.
Donald Trump, who has previously called cryptocurrencies a scam, supported digital assets during his campaign, promising to make the United States the “cryptocurrency capital of the planet.” This change in his position can be attributed, in no small part, to the injections into his campaigns from the cryptocurrency markets.
A few days after taking office, Trump ordered the creation of a cryptocurrency working group to develop new regulation of digital assets and explore the possibility of creating a national cryptocurrency reserve.
A few days before his inauguration , Trump launched his own cryptocurrency, $TRUMP.