Crypto Market Plummets Amid Trade Tensions
The cryptocurrency market is experiencing significant turmoil as ongoing tariff disputes between the United States and other countries dampen investor confidence. On April 7, Bitcoin suffered a sharp decline, dropping over eight percent on global exchanges, with its price hitting a yearly low of $76,790 (approximately Rs. 65.7 lakh). In India, Bitcoin also fell nearly seven percent, bringing its value down to $80,895 (around Rs. 69.2 lakh).
Market Reaction to Trade Tariffs
The recent uncertainty surrounding new U.S. trade tariffs has adversely affected the cryptocurrency market, mirroring declines seen in traditional stock markets. Bitcoin’s price dipped below the $80,000 mark (about Rs. 68.5 lakh), and many other cryptocurrencies are facing double-digit losses, signaling the potential onset of a bear market. Despite the downturn, billionaire investor Mark Cuban has advised against panic selling, suggesting that markets typically recover over time, although the timeline for such recovery remains unpredictable. This sentiment was echoed by the CoinDCX research team, which highlighted the current market conditions.
Ether and Altcoins Suffer Greater Losses
Ether, the second-largest cryptocurrency by market capitalization, experienced even steeper losses than Bitcoin in the past 24 hours. At the time of reporting, Ether was trading at $1,543 (approximately Rs. 1.32 lakh) on international exchanges, reflecting a decline of 14.7 percent. On Indian exchanges, the price of Ether fell by around 13 percent, settling at $1,630 (roughly Rs. 1.40 lakh). The majority of altcoins, including Ripple, Solana, and Binance Coin, also faced significant losses, contributing to an overall decline in the crypto sector’s valuation.
Market Cap and Investor Sentiment
The total valuation of the cryptocurrency market dropped by 8.10 percent over the last 24 hours, resulting in a market cap of $2.45 trillion (approximately Rs. 2,09,83,788 crore), according to CoinMarketCap. The prevailing investor sentiment is marked by fear, as indicated by the Fear and Greed Index, which is nearing the ‘Extreme Fear’ zone. However, there is a potential silver lining on the horizon, as U.S. federal agencies are expected to release information regarding the country’s cryptocurrency holdings later today. A substantial announcement could trigger a much-needed relief rally in the market.
Despite the current volatility, stablecoins like Tether and Binance USD have shown resilience, maintaining minor gains amidst the broader market decline. Analysts are advising investors to remain cautious, as the pressure from global financial uncertainties and short-term selling could continue to challenge the stability of Bitcoin and the overall cryptocurrency marketplace.
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