Crypto Market Stalls as Investors Weigh Macroeconomic Uncertainty

The cryptocurrency market showed little momentum on Monday as investors assess the impact of tariffs from President Donald Trump.

Bitcoin (BTC) gained 1.3% in the past 24 hours, trading around $97,300, while Ethereum (ETH) rose 1.1% to approximately $2,670. XRP remained unchanged at $2.42, while Solana (SOL) gained 1.2% to $203, according to CoinGecko data.

The overall cryptocurrency market capitalization declined by 0.6% in the past 24 hours to $3.33 trillion. During this period, 119,901 traders were liquidated, with total liquidations amounting to $245 million. Bitcoin (BTC) accounted for approximately $47 million in liquidations, while Ethereum (ETH) contributed $45 million. Liquidations from altcoins totaled $42 million, according to Coinglass.

Experts pointed to Trump’s recent tariffs on China and his proposed tariffs on Canada and Mexico as key factors driving investor caution.

"All eyes are on how US markets react to China’s tariffs – if equities sell off, expect Bitcoin to test lower support levels,” said Mena Theodorou, co-founder at crypto exchange Coinstash. “On the flip side, record-breaking ETF inflows and upcoming FTX payouts provide strong tailwinds for the market.”

Theodorou elaborated that crypto markets remain in a wait-and-see mode as traders monitor how US markets will respond to China’s newly imposed 10-15% tariffs on U.S. energy and vehicles. With Trump expected to counter any tariffs with additional measures, investors are preparing for heightened market volatility.

Tariff Troubles

President Donald Trump in early February reignited trade tensions with China by imposing a 10% tariff on Chinese imports. In response, China retaliated with 15% tariffs on U.S. coal and liquefied natural gas, along with 10% tariffs on crude oil, agricultural machinery, and large-engine vehicles.

The tariff battles, which were also seen during his first term, have raised concerns about supply chain disruptions and higher costs for businesses and consumers. Analysts warn that escalating trade tensions could result in increased inflation, impacting global markets and investor sentiment.