Crypto market collapses: $500 billion lost in 24 hours! Although we have seen many financial storms in the last few decades, such chaos in the cryptocurrency market is rare.
The crypto market has recently experienced a terrible collapse. The total value of various cryptocurrencies decreased by about $500 billion (half a trillion) in a single day. This is a unique event in the market’s history, as it has had its worst day in over a year.
Why did this happen?
US President Donald Trump’s new tariff announcement is the main reason for this chaos. He announced new tariffs on Canada, Mexico, and China. This has led to fears of a global trade war, which has affected the stock market, the economy, and risky assets such as the cryptocurrency market. Investors started leaving risky assets and taking refuge in safe havens, which has led to this collapse in the crypto market.
How much has cryptocurrency been damaged?
Among the most popular currencies in the crypto market, Ethereum and Ripple have lost a third of their value. The price of Solana cryptocurrency has also fallen by almost a quarter. However, Bitcoin has managed to maintain its value well. Even though it has fallen below $100,000, Bitcoin is seen as a haven and a ‘digital gold’.
However, meme coins have suffered the most. For example, the price of Donald Trump’s own Trump coin has fallen by 70% from its peak. Such coins are often speculative and risky, so investors are abandoning them.
What is Trump’s role?
Donald Trump has long supported the crypto industry and declared himself the “crypto president.” He recently signed an executive order that is expected to create a favourable environment for it. However, his wealth, his announcement of tariffs on Canada, Mexico, and China, and the threat of a trade war have upset the crypto market.
Bitcoin’s Recent Rise
The price of Bitcoin recently reached an all-time high of $110,000. Many believe the main reason is Donald Trump’s arrival in the White House. He has promised to create a Bitcoin reserve in the United States, which could make Bitcoin even more popular.
The future of the crypto market
The collapse of the crypto market has once again made it clear how risky an investment can be. Investors should be careful before investing in speculative assets like meme coins. However, safe assets like Bitcoin are still considered a haven for investors.
The total trading volume in the crypto market has recently reached over $2 billion for the first time this year. This shows that the crypto market is still alive and that its future will depend on the global economy and policies.
Therefore, it is extremely important to be careful and keep up with market changes when investing in crypto. It’s a risky game, but with the right knowledge and planning, it can be a great place to make an attractive investment.
