Key Takeaways
- China responded that it is ready to “fight to the end” after the 100% tariff imposed by the US President, plunging the crypto market similar to Friday’s crash.
- Other factors weakening the market outlook include potential selloffs by whales, institutions, and the US government.
- Today, the largest cryptocurrencies, Bitcoin, Ethereum, and Binance Coin, posted a price dip of 3.55%, 4.70%, and 12%, respectively.
Today, China’s response to Friday’s 100% tariff imposed by the US President has sent the overall crypto market tumbling and signals escalating tensions between the two countries. According to local news media, an unnamed Commerce Ministry spokesperson said that China is ready to “fight to the end” while also keeping the door open for negotiations.
China Responds to US 100% Tariff
The report further added that the United States cannot simultaneously seek dialogue while threatening to impose new restrictive measures, as this is not the proper way to engage with China.
This response from China suggests that the trade conflict between the two countries is intensifying, raising concerns of a further market decline, which the market is already witnessing.
Crypto Market Plummets 3.85%
Similar to Friday’s historic crypto crash, today’s market once again showed comparable momentum, with a notable 3.85% dip resulting in $649.19 million in over-leveraged position liquidations.
This marks the largest market drop since the crash and raises questions about whether the market is repeating Friday’s plunge or experiencing a typical correction.
With a notable 3.85% market fall, the overall crypto market lost $23 billion in value, bringing the total market cap down from $4 trillion to $3.77 trillion.
Amid this downturn, major assets including Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) have slipped 3.55%, 4.70%, and 12%, respectively, over the past 24 hours.
This dip in the top three cryptocurrencies appears to be influencing the overall market.
Also Read: Crypto Trader Found Dead in Lamborghini Amid Historic Market Crash, Losing $30M
Factors Driving the Crypto Market Downturn
Another key factor strengthening the market downturn is the potential selloff by whales, institutions, and the US government.
Today, a blockchain-based transaction tracker, Onchain Lens, revealed that asset management giant BlackRock has dumped a massive 93,158 ETH worth $364.34 million and 703.74 BTC worth $77.67 million into Coinbase Prime.
It is not yet confirmed whether the asset manager intends to sell, but transferring assets to exchanges typically signals preparation for a potential selloff.
In addition, today the US government also dumped 667 BTC worth $75 million, as shared by a crypto expert on X.
Besides these recent transactions by institutions and the government, a crypto whale, potentially a Trump insider, has built a $500 million BTC short position. The last time this happened, the market plunged 50% to 80%.
These transactions by institutions and the government raise questions about whether there is insider information that could potentially crash the overall market.
Recently, a well-followed crypto expert shared on-chain data noting that long-term holders are selling their crypto holdings more aggressively than at any point since the last tariff crash on Friday.
