Economic Turmoil: Crypto Market Loses 25% Of Value As Recession Worries Mount
The crypto market is facing a downturn due to concerns over a potential trade war and disappointment regarding US government crypto reserve plans. Bitcoin has dropped nearly 4% to around $79,000, while Ethereum has fallen 10% to $1,860. Other cryptocurrencies like XRP, Solana, and Cardano have also seen declines of 4%, 7%, and 8%, respectively. President Trump's aggressive tariff policies have raised fears of inflation and a recession, further unsettling investors. Trump's comments about short-term economic pain have amplified market anxieties. The anticipated national crypto reserve plan has disappointed investors, as the government will not make new purchases but will retain seized cryptocurrencies. This downturn follows a broader decline in risk appetite, with the crypto market losing about 25% of its total market cap since the Federal Reserve's December announcement regarding interest rates.
