Billions wiped out when Trump duties sparkle renewed inflation interest


Stock markets are ready for extreme volatility after the weekend crypto sales.

Approximately $ 2.2 billion was liquidated from Cryptocurrency market Over the past 24 hours after President Donald Trump’s announcement of customs on import from Canada, Mexico and China, according to information from Coinglass.

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Bitcoin, the largest cryptocurrency after market cases, dropped to a low of $ 92,500 on Sunday evening, according to Coinmarketcap details, after failing to hold over $ 100,000 as soon as tariff news shows up. It is currently floating by about $ 93,000, a reduction of 6.5% over the past 24 hours.

However, Bitcoin’s decline was darkened by the losses seen in other digital assets. During the same time frame, Ethereum, Solana and many other altcoins saw their values ​​cut with double -digit.

Ethereum (ETH) sank 20% to $ 2,400, While XRP and Dogecoin (Doge) Each crashed 24%. Cardano (ADA) tumbled 25%, Binance Coin (BNB) threw 15%and Solana (sun) fell by 15%. Cryptocurrency Market CAP fell 10% to $ 3 trillion.

The sharp market sales marked the largest one-day liquidation event in Crypto History. This event previously exceeded major market sales in connection with the Covid-19 crisis and the FTX collapse.

According to Coinglass, the decline in massive liquidations in the market for Cryptocurrency derivatives, with over $ 1.8 billion in long positions, triggered over leading trading platforms and $ 345 million in short positions.

From the latest data, Ether took the lack of losses, with a huge $ 603 million in liquidations over the past day. Bitcoin was not long after $ 407 million, while a combined $ 435 million in liquidations met a bunch of other altcoins. XRP saw a huge $ 115 million wiped out, while Sol and Dogge clocked $ 85 million and $ 83 million respectively.

Trump’s new tariffs could lead to inflation

On February 1, Trump announced new tariffs on import from Canada, Mexico and China, which would come into force on February 4. The tariffs include a 25% fee on goods from Canada and Mexico and a 10% customs on Chinese import.

Trump has stated that these measures are necessary to fight illegal immigration and drug trafficking, which he has noticed a national emergency.

The tariffs will apply to all imports except Canadian energy resources, which will receive a reduced duty of 10%. Goods that are already under transport before the announcement are exempt from these customs.

Economists, however, warn that Trump’s planned tariffs could inflate prices in different sectors, including cars and food products. Influenced companies, in order to maintain profitability, often transfer these increased costs to American consumers in the form of higher prices for the final products, which ultimately contributes to inflation.

Following a trio of interest rate cuts last year, the Federal Reserve (Fed) held interest rates in the range of 4.25% to 4.5% during its meeting in January 2025. Fed chairman Jerome Powell stated that the central bank is not in a hurry with lower prices because the latest Economic indicators show a solid expansion and a stable labor market.

The latest inflation data indicates that the annual inflation rate in the United States rose to 2.9% during the 12 months that ended in December 2024, up from 2.7% in November. This means that inflation has increased for three months in a row.

Unemployment has remained low, and although inflation has shown signs of being persistent, Fed is careful about making additional cuts that can aggravate inflation pressure.

Canada and Mexico have signaled intentions to avenge against Trump’s new tariffs. Canadian Prime Minister Justin Trudeau announced that Canada would implement 25% tariffs of approximately $ 155 billion of US goods.

Mexican President Claudia Sheinbaum has also ordered retaliation; However, specific prices and targeted products have not yet been detailed.

Global markets around the world support for volatile trade on Monday when investors assess the potential fall from President Trump’s customs message. When trade began, the US dollar was strengthened while the Canadian dollar and peson weakened.



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