Bitcoin, Ethereum and Dogecoin prices are plummeting today, sparking bearish sentiment the cryptocurrency market. This followed US President Donald Trump’s move, which sparked fears of a full-blown trade war with China.
Why Bitcoin, Ethereum and Dogecoin Prices Are Falling
Bitcoin, Ethereum, and Dogecoin prices are reportedly falling today CoinMarketCap data. The flagship cryptocurrency fell as low as $104,000 in the past 24 hours, erasing early October gains that led to a new all-time high (ATH) greater than $126,000. Ethereum fell as low as $3,400, while Dogecoin fell below the psychological $0.2 level and fell to $0.11.
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This was followed by this huge collapse of Bitcoin, Ethereum and Dogecoin Post on social media Trump’s Truthin which he announced that the United States will impose a 100% tariffs on Chinain addition to any fees they are currently paying, starting November 1st. He added that they will also impose export controls on all crucial software coming from China starting November 1.
Notably, Trump had done so earlier in the day threatened to massively raise tariffs on China, claiming the country was becoming hostile. This initial threat caused Bitcoin to fall sharply below $120,000 from a high of around $122,000. Meanwhile, the Ethereum and Dogecoin prices have suffered sharp declines.
Bitcoin was trading at around $116,000 when Trump announced a 100% tariff on China, which sent the cryptocurrency market into a tailspin. Further decline in BTC it also pushed Ethereum and Dogecoin to intraday lows of $3,400 and $0.11, respectively, extending their market losses. Meanwhile, these massive drops for cryptocurrencies have contributed to the largest liquidation event in cryptocurrency history.
CoinGlass data shows that $20 billion has been wiped out of the cryptocurrency market in the last 24 hours, due to the collapse in prices of Bitcoin, Ethereum and Dogecoin. This liquidation event was bigger than the COVID-19 collapse and the FTX Bankruptcy Collapse.
The trades may have contributed to the collapse
BitMEX co-founder Arthur Hayes suggested that cryptocurrency exchanges may have contributed to the price collapse of Bitcoin, Ethereum and Dogecoin. In a X postsaid that the automatic liquidation of collateral ties to cross-margined positions by the large CEX is rumored to be the reason why many altcoins “got smoked on the way down.” He congratulated those who bought the dip, saying that market participants are unlikely to see such levels again anytime soon on many high-quality altcoins.
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Cryptographic analyst Kevin Capital expressed his opinion that the drop in prices of Bitcoin, Ethereum and Dogecoin was caused by serious problems at major exchanges such as Robinhood, Coinbase and Binance. He added that what makes the situation even worse is that these trades did not allow people to buy the dip at the bottom point.
Featured image from iStock, chart from Tradingview.com