The Altcoin Carnage: Will The Market Recover Itself Before Its Too Late?

This weekend, the crypto community was treated to a not-so-nice surprise when the market crashed. BTC crashed close to 8%, ETH crashed to 20%, etc. This sharp decline has resulted in mass panic and outrage in the community.  

President Trump made a bombastic announcement after he was sworn in. The re-elected president clearly stated that he wanted to raise the tariffs on Mexico and Canada by up to 25%. Meanwhile, China will be subjected to a 10% tariff.  

This started a process that is approaching a financial catastrophe.  

Trump’s Turf War 

Trump recently shared the news that it wants to revise tariff rates of major US trading partners like China, Canada, and Mexico. As a result, the trio is all set to impose countermeasures. This can result in a complex trade war between the trio and the USA. 

This triggered a major sell-off event in the community. In a matter of hours, close to $600 trillion in crypto assets were flooding the market. This led to plummeting crypto prices across the board.  

The Aftermath Of The Tariff Announcement 

The aftermath of Trump’s tariff decision can be truly seen across the board as more and more markets are getting sucked into the void. Traders went frantic and started selling. As per Chris Weston of Pepperstone, “Crypto became the weekend’s risk proxy.” 

Altcoin Carnage 

Before Trump’s announcement, major and minor altcoins were showing traction. These coins were profitable and were seen as viable means of investment. However, the story changes as these coins dipped.  

For example, coins like XRP and Cardano-based altcoins suffered a 25% and 27% dip in their values. This created a sense of panic, and people started selling. As a result, the market was saturated with coins, and nobody to take them off. 

This created a situation where crypto’s viability is at stake. In other words, investors are pulling out their stakes from crypto to cover their losses.  

The Wrap: What’s In The Future? 

The current situation for crypto seems dicey. Even though experts like Jeff Park of Bitwise state that this trend would catapult the market toward a bullish trend, everything seems dicey at the moment. 

Meanwhile, other analysts believe that the smartest and most mature thing to do is to ‘buy the dip.’ This means hoarding coins since they are reaching a low. This should create a positive supply/demand ecosystem, which can catapult the landscape towards a positive wave.