Crypto traders blame Trump’s tariffs in search of ‘singular event’
Crypto retail traders attributed a recent decline in the broader crypto market to President Donald Trump's announcement of a 100% tariff on China. This behavior, described by sentiment platform Santiment as ‘rationalization,’ reflects a common tendency among retailers to seek a singular cause for significant downturns. Following the announcement, discussions surrounding the US-China tariff concerns saw a noticeable increase among market participants. While geopolitical issues were recognized as a catalyst for market drops, analysts also highlighted excessive leverage, with a substantial amount of long positions being liquidated compared to shorts. Bitcoin's price fell over 10% within 24 hours, dipping to a low of $102,000 following the tariff news. Santiment indicated that developments in US-China relations will significantly influence trading decisions for retail investors. Positive outcomes from ongoing talks could restore market sentiment, while escalating tensions may lead to predictions of Bitcoin falling below $100,000. The Crypto Fear & Greed Index also reflected this decline, dropping from 'Greed' to 'Fear' levels not seen in six months.
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