Crypto Market News Today: Crypto Market Tumbles as U.S. Slaps 104% Tariff on Chinese Goods

In a dramatic escalation of trade tensions, the U.S. has imposed a hefty 104% tariff on Chinese imports, triggering market volatility and sending shockwaves through global markets and creating turbulence in the cryptocurrency sector. Seen as a dramatic escalation of the ongoing U.S.-China trade dispute, the move has fueled widespread panic selling, wiping out billions from the global cryptocurrency market cap almost instantly.

Bitcoin and Ethereum Take a Hit

The impact of the tariff news was swift and brutal. Bitcoin (BTC), which had been showing signs of bullish momentum earlier in the week, crashed to a low of $74,589 before recovering slightly to hover around $77,100. Ethereum (ETH) wasn’t spared either, dropping over 6% in just a day.

Other top altcoins like Solana (SOL) and XRP saw similar declines, with both losing around 3% of their value. The sudden downturn in crypto markets shows how tightly interconnected geopolitical events and investor sentiment have become. As global uncertainty rises, even digital assets, often thought of as safe havens or “uncorrelated” assets, are feeling the heat.

Fear Index Plummets as Volume Dries Up

The Crypto Fear and Greed Index, a widely followed sentiment tracker, dropped sharply to a reading of 15, signaling “Extreme Fear.” The psychological impact of such a low rating can’t be overstated. Many retail investors are now hesitant to make any moves, while some whales are reportedly shifting funds into stablecoins or pulling assets off exchanges entirely.

Daily trading volumes also saw a massive decline, falling by 35% to just $124.44 billion across the top exchanges. Analysts suggest this reflects both a freeze in buyer enthusiasm and a defensive pullback among investors trying to minimize exposure to ongoing volatility.

A Mixed Bag for Altcoins

While the broader market was painted red, a few altcoins managed to defy the trend. Tokens like HYPE, IP, and JASMY managed to climb over 3%, showing some resilience amid the chaos. These exceptions were likely driven by niche communities or ecosystem-specific news rather than macroeconomic factors.

However, the vast majority of altcoins followed Bitcoin’s lead into the red. Notably, AB suffered a brutal 23% drop, while NEAR and EOS each fell by more than 10%. With market sentiment so fragile, even small bits of negative news are having outsized effects on token prices.

Is This the Final Dip Before the Rally?

Despite the bloodbath, not everyone is throwing in the towel. Influential crypto analysts like Carl “The Moon” and Chiefy have voiced a more optimistic outlook. They argue that this could be the last major correction before a broader bull run resumes later this year. For seasoned investors, this may be seen as a potential buying opportunity, though most are urging caution given the geopolitical uncertainty.

In the meantime, crypto holders are advised to stay updated and avoid impulsive decisions. The market remains in flux, and until there’s clarity on how long the U.S.-China trade dispute will last, volatility is likely to continue.