The market is grabbed by a sudden downturn, as Trump’s newly imposed tariffs sent fresh chills down the market. In a circular paranoia, the market reacts badly. And a new outflow trend has been set off.
Starting from equities to bigger risk assets, there’s a huge selling trend everywhere. The presidential decision is not the only thing that triggered investors. All major coins were losing value overnight. Added to the macro market uncertainties, it created a doomed existential scenario.
Most seasoned investors were also gripped by fear. The investor sentiment rattled. Consequently, the big liquidation wave started to flow.
What’s the Impact?
The impact has been widespread. Digital asset investments are facing rock bottom. In the meantime, the staggering outflow of $240 million speaks volumes about the distorted market scenario.
The decline was set off by the BTC-inspired tokens and ETFs mainly. These tokens were also responsible for the major share of withdrawals. Meanwhile, analysts observe that institutional investors are eager to sell off their assets hyperactively.
Is BTC Drowning?
Amidst signs of significant downfall, BTC is still showing signs of slight recovery. Crypto hit rock bottom at the time of the fall. Setting off the worst panic that the market experienced in a long time.
Investors feel that it could be a short correction span. As the anxiety wards off, the crypto buying trend may resume again.
The long-term investors are currently building up, as on-chain measurements suggest. It also shows that investors are keen to be long-term partners to BTC, despite recent volatility.
Are Other Coins Rebounding?
Other than BTC, the rest of the market is also attempting a rebound. A few coins like Ethereum and Solana are also showing recovery signs after big downfalls. However, caution prevails as traders feel that more shocks could be underway.
