Bitcoin dropped to a 3-week-low on Sunday after U.S. equity contracts pointed lower, and as investors processed the latest escalation of trade tensions in President Donald Trump’s administration.
CoinGecko shows that over the course of 24 hours, the market value for Bitcoin, which is by far its largest crypto, fell by more than 6% to reach $77,700.
Ethereum has fallen by nearly 12%, to $1,575. The broader crypto market also showed similar drops, reflecting the losses seen in global risk assets.
U.S. Stock Futures also continued their losses in the morning hours of Asia. S&P 500 E-mini futures fell 4.3%, Dow futures lost 4%, and Nasdaq 100 futures dropped 4.6%, setting the stage for a potentially turbulent week on Wall Street.
This sell-off comes after Trump’s new tariffs, which went into effect Saturday on the major U.S. Trading Partners, rekindled fears of an extended trade war, and a global economic slowdown.
Included in these measures is a 10% universal tariff applied to nearly all imports, while reciprocal rates are much higher and targeted at specific countries.
Imports of goods from China face a tariff of 34%, and those imported from Europe are charged a tariff rate 20%. These tariffs reflect the trade barriers these countries impose against U.S. products.
The crypto market began to decline in sync with CME’s futures opening.
Peter Chung (head of research, algorithmic trading firm Presto) told Reuters: “There were rumors that Wall Street banks had called traders to their desks at 5 am HKT today, ahead of the CME Futures opening.” Decrypt. The tension was high for something major to happen.
Chung stated that there were scenarios in which the risk off sentiment could be reversed.
He said that there was talk about the White House not being on the same page with regards to the speed of tariff implementation. Things could change quickly if Trump pulls back or the Fed makes dovish statements or indicates an emergency intervention.
Art of the Deal
Pratik Kakala, the director of research at Apollo Crypto told Decrypt Markets may enter a new phase with increased insecurity and “history-book implications.”
Kala stated that “this could be a long-term trade war.” “That said, I believe that Trump is playing by The Art of the Deal.”
Referencing the president’s best-known business book, Kala pointed to two of its central principles—”make them need you” and “protect the downside”—to suggest that Trump may be angling for leverage ahead of potential negotiations.
Kala said, “Protecting your downside is simple.” One tweet away.
Kala cautioned that volatility will likely continue to be high. However, he said the drop could provide re-entry opportunity for those traders willing to risk.
He said, “This would be a great place to begin dabbling again with small amounts and caution.” We should soon see deals and negotiation taking place.
Kala also said the European Union is still the largest unknown, as it hasn’t responded in a formal way. “If they return with something aggressive we are in for yet another setback.”
However, the investor noted that “many investors eagerly wait for dust to settle in order to purchase back shares, since these opportunities rarely come up.”
