Trump Tariffs Impact Crypto: Virtuals Protocol, Bittensor, Neo, Jasmycoin Struggling?

Key Points

• Cryptocurrency prices, including Bitcoin and altcoins, are falling due to increased market volatility and tariff risks.
• Bitcoin’s price is at risk due to the formation of a bearish double-top pattern.

Cryptocurrency values are experiencing a significant drop, with the total market capitalization of all coins decreasing by nearly 4% to less than $3.6 trillion.

Cryptocurrency Crash

Bitcoin and the majority of altcoins are seeing red, with tokens such as Virtuals Protocol, Bittensor, Neo, and Jasmycoin being the most affected. These tokens experienced a crash of over 15% on Sunday.

The ongoing risk-off sentiment in the financial market due to tariff risks is the main cause of the crash of Bitcoin and other altcoins.

Impact of Tariffs

President Donald Trump is set to impose a 10% tariff on Chinese imports and a 25% levy on goods from Mexico and Canada. These countries have vowed to fight back against these tariffs, potentially leading to a significant economic crisis.

This new trade war has resulted in a significant increase in market volatility. The U.S. benchmark equity indices ended lower on Friday as markets analyzed the latest reading of the Federal Reserve’s preferred inflation metric and the impending tariff threat.

The Dow Jones, S&P 500, and Nasdaq 100 indices all fell by nearly 1%. U.S. inflation also rose by the highest amount in eight months, indicating that the Federal Reserve is unlikely to cut interest rates anytime soon.

These tariffs will also affect inflation and the Federal Reserve. Economists predict that companies will raise prices to cope with the price changes. For example, vehicles from General Motors and Ford imported from Mexico will see a 25% price increase, as will other items like televisions and smartphones.

Cryptocurrency prices tend to drop when there is significant volatility and economic risk in the United States, as well as when the Fed adopts a highly hawkish stance.

Bitcoin’s Price Risk

Furthermore, Bitcoin and other altcoins are in the red following the formation of a high-risk chart pattern by the former, indicating potential further losses.

Bitcoin has formed a double-top pattern at $108,445, with its neckline at $88,940. This pattern is one of the most common bearish patterns in the market.

Bitcoin has also formed a bearish divergence chart pattern as the Percentage Price Oscillator and the Relative Strength Index continue to fall. The PPO indicator is derived from the MACD, one of the most common divergence patterns in the market.

Therefore, there is a risk that Bitcoin’s price will drop to $88,940, particularly if it loses the support of the 50-day moving average. As a result, altcoins are falling as the risk of a Bitcoin crash increases.