rewrite this title Bitcoin, XRP, and Dogecoin Decline Amid Fears Over Trump’s Tariffs

KeyTakeaways:

Bitcoin drops 6% as Trump’s crypto reserve announcement fades amid tariff concerns.Ethereum, XRP, and Solana fall over 11% as market reacts to trade tariff fears.$661 million in futures liquidations occur as market volatility increases.

The crypto market has seen a downturn after a surge following President Donald Trump’s announcement that certain digital assets would be included in a proposed U.S. crypto reserve. Bitcoin, Ethereum, XRP, and other major cryptocurrencies have all experienced declines, with fears surrounding Trump’s upcoming trade tariffs and rising inflation concerns overshadowing the previous optimism.

Read Also: Donald Trump Announces Strategic Reserve for XRP, SOL, and ADA, Mentions Bitcoin In Passing

Bitcoin, which briefly hit a high of around $94,000 on Monday, has dropped to approximately $87,300 as of the latest figures. This 6% decrease within 24 hours reflects a cooling effect on the initial hype surrounding the U.S. government’s move to amass crypto assets as part of its strategic reserve. Ethereum, Solana, XRP, and Cardano, which Trump also mentioned as part of the reserve plan, have experienced even steeper declines, with each seeing losses of 11% or more over the past day.

Ethereum is currently priced at $2,192, while XRP has fallen to $2.47. Solana, which had briefly seen bullish momentum, is now trading at $148, and Cardano has decreased to $0.90. Despite the downturn, Cardano remains one of only two assets in the top 10 cryptocurrencies by market capitalization that has experienced growth over the past seven days, with a 24% rise.

Though Dogecoin was not included in Trump’s reserve proposal, the cryptocurrency followed a similar pattern to others. After a brief increase, Dogecoin has seen a 9% drop in the last 24 hours, now trading at $0.206. This widespread selloff follows a volatile market trend that has left many investors reeling.

Liquidations Surge Amid Market Volatility

As a result of the sharp market movements, many futures positions were liquidated. According to data from CoinGlass, $661 million worth of futures positions were closed within the last 24 hours. 

Of this total, $517 million consisted of liquidated long positions, where investors had bet on price increases. Bitcoin led the liquidations with $220 million, followed by Ethereum with $131 million. Solana, XRP, and Cardano also saw substantial liquidations, contributing to the overall market turbulence.

Stock Market Correlation and Tariff Concerns

The downward trend in the cryptocurrency market aligns with broader market movements, with major U.S. stock indexes also experiencing declines. The Dow, S&P 500, and Nasdaq all fell on Monday, fueled by concerns over the potential effects of Trump’s trade tariffs.

Additional tariffs are expected to be implemented against Canada and Mexico starting Tuesday, and tariffs on China are also anticipated to follow soon after. These macroeconomic factors are contributing to the uncertainty in both traditional financial markets and the digital asset space.