The digital assets sector suffered massive liquidations of over $900 million in the previous 24 hours as Bitcoin slumped to $90,000.
The latest decision by the US president to continue with tariffs on Mexico and Canada, with new restraints for China’s investment sector, sparked risk-off sentiments in the financial world.
While the entire crypto market reflected the dire situation with significant price dips, the PolitiFi meme sector appeared to suffer the most.
Coingecko data shows the market capitalization of all political-themed tokens declined by nearly 20% in the past day to $2.93 billion.
Source – Coingecko
The remarkable uptick in daily trading volume possibly highlights increased seller activity as players exit to minimize losses.
PolitiFi tokens lead market crash
Political-tied cryptocurrencies contributed to the immense market slump in the past 24 hours.
Several speculative tokens witnessed magnified selling momentum as bearish sentiments mounted.
Source – Coingecko
Meme tokens have experienced dwindled interest lately amidst insider trading and scam concerns.
For instance, critics have attacked the Solana meme coin ecosystem for supporting the launch of assets such as TRUMP and LIBRA, which triggered massive losses for investors.
The developments have seen Solana underperforming lately, losing approximately $50 billion in the previous month.
Top PolitiFi tokens reflect the dominant bearishness with significant dips on their price charts.
Trump tariffs dent market confidence
While cryptocurrencies have underperformed recently, Trump’s move to proceed with the trade war catalyzed the latest crash.
The US president has decided to pursue tariffs on Mexico and Canada while introducing new restrictions for China after the initial pause.
Trump will impose tariffs on imports from Mexico and Canada next month.
Also, he confirmed plans to monitor China’s investment sector, further escalating market ambiguity.
Investors have become risk averse as concerns over inflation and hawkish interest rate modifications due to the trade war.
The prevailing outlook shows traders avoiding riskier assets like meme tokens, which have crashed hard in the latest plunge.
Crypto market outlook
The cryptocurrency market capitalization lost over 7% in the past day to $2.94 trillion.
The Fear and Greed Index displays ‘extreme fear,’ suggesting more pain before decisive recoveries.
Bitcoin trades at $90,358 after a 6% daily dip. The bellwether crypto needs swift recoveries to avoid capitulation.
Popular analyst Ali Martinez warned about a potential crash to the $75,600 support if BTC fails to hold above $93,700.
If #Bitcoin $BTC fails to hold $93,700 as support, the next key level to watch is $75,600!
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That would mean a nearly 20% slide from the current values.
Such developments will trigger substantial altcoin plummets, extending the prevailing meme tokens’ struggle.
The market exhibits significant volatility with a bearish edge.
Caution and patience remain paramount when interacting with cryptocurrencies in their current state.
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