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Cryptocurrency market struggles amid trade war concerns

Monday 07 April 2025 - 16:30
Cryptocurrency market struggles amid trade war concerns

The cryptocurrency market is experiencing significant downturns, following the global stock market's drop fueled by a trade war initiated by U.S. President Donald Trump. Major cryptocurrencies are mirroring the declines seen in European, Asian, and American stock indices.

Bitcoin has hit its lowest point since November 2024, plunging over 9.6% to around $75,000. Ethereum is also facing a sharp decline, falling by more than 18%, bringing it down to $1,460, the lowest level since February 2021. Despite hopes for positive cryptocurrency regulation in 2025, concerns about a potential global recession are overshadowing market expectations.

Memecoins, such as Dogecoin and Shiba Inu, have also taken a hit, losing 18% and 13%, respectively. Although these coins have gained popularity among investors seeking affordable alternatives, their lack of scarcity makes them more volatile than other cryptocurrencies, according to Kraken cryptocurrency platform.

As fears of a global recession mount, traders are shifting toward safer assets. On Saturday, a 10% universal tariff on U.S. imports went into effect, with more specific tariffs on certain countries set to be announced on Wednesday. The cryptocurrency market remains on edge, anticipating how these global trade tensions will affect the broader financial landscape.

The global stock markets have also been impacted, with European indices seeing drops of over 5% as trading began on Monday. The Spanish Ibex 35 has fallen to its lowest point since January, with a 6% decline. Meanwhile, Asian stock markets are experiencing their most significant downturn in 16 years, with Japan's Nikkei 225 dropping more than 20% from its peak in December.


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