Bitcoin value dives as uncertainty grips market
Bitcoin’s price plunged nearly 10 percent on Monday as an escalating trade war and uncertainty over creation of a US crypto reserve fund sent investors running from risk.
After jumping on US President Donald Trump’s talk of creating a national cryptocurrency reserve, bitcoin and similar digital assets dove in the face of concerns it might not actually happen.
“Everything is getting sold,” Forexlive manager Adam Button said, adding: “There’s a de-risking that’s unfolding” among crypto investors.
Late in the day, Bitcoin was down 9.47 percent at $85,321.69 each. There is more than a trillion dollars worth of bitcoin in the largest overall valuation in the crypto realm.
The second largest digital asset, ether, saw its price drop more than 15 percent.
Other major cryptocurrencies such as XRP, Cardano and Solana were down by almost 20 percent.
Weighing on cryptocurrency prices was Trump’s confirmation of 25 percent tariffs on all products imported to the United States from Mexico or Canada, which have already promised to retaliate.
Button believes that concern about this trade war is compounded by worries about US economic growth, which many see weakening in the first quarter.
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Cryptocurrency prices had climbed early Monday, buoyed by Trump the previous day naming five that could be used in a national strategic reserve fund.
Along with bitcoin and ether, Trump mentioned XRP, Cardano and Solana.
This reserve would be created by bringing in digital currencies already in US possession, mainly from seizures in court cases or assets of individuals or companies under sanctions.
Some in the industry have expressed reservations about the array of currencies
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