After a week in which optimism seemed to return carefully, the markets today color deep red again. Bitcoin (BTC) fell by approximately 2.3%, while altcoins such as Ethereum (ETH), Dogecoin (Doge) and XRP are hit even harder. In the last 24 hours, these coins fell by 5.7%, 7.2%and 5.8%respectively. What causes this sudden relapse?
Economic tensions are touching the cryptomarkt again
Initially, markets responded positively to reports that the import tariffs would be better than expected. But that sentiment quickly changed. Donald Trump unexpectedly announced that he will impose extra import duties such as countries such as Canada and the European Union (EU) economically concealed against the United States.
His statements again threw oil on the fire of the trade tensions, exactly when the markets seemed to be somewhat unwinding. The statements provide extra uncertainty, especially in the run -up to the American inflation figures that are being published today. That data can have a major influence on the future interest rate policy of the Federal Reserve (FED).
Long Traders Heavily affected
At the same time, a good wave of liquidations took place. According to data from analysis platform Coinglass, positions were liquidated in positions for no less than $ 357.44 million in the last 24 hours. The majority of them consisted of lung positions: investors who had just focused on rising rates, encouraged by earlier optimism.
What can we expect now?
The macro-economic situation still has a strong grip on both the cryptomarket and the traditional financial markets. As long as Trump continues to look up economic confrontations with other countries, market uncertainty will probably persist.
Yet there is also another side of the story. Nothing has changed on the foundations of promising crypto projects. The current sideways and falling price movements can offer interesting entry moments. If trade tensions decrease and central banks decide to reduce interest rates, it can be the starting signal for a new upward phase within the cryptomarkt.
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Source: https://newsbit.nl/crypto-koersen-kelderen-ethereum-dogecoin-en-xrp-flink-onderuit/
