Stock Markets slumped over the weekend after US equity futures pointed sharply lower, surrounding potential trade wars under Donald Trump's policies triggering fears of new tariffs, regulations, and restrictions influencing digital assets which will hit global growth soon. This sparked over $2.1 billion in crypto liquidations.
It is important to consider the interconnection of the crypto market, Price movements of Bitcoin being the bellwether of Cryptocurrency will majorly influence other cryptocurrencies with strongly correlated currencies followed by minor ones.
Bitcoin's Downward Slide
Massive crypto liquidations signal concerns over higher interest rates. Bitcoin's price touching $90,000(its lowest in 2025) started raising concerns in the cryptocurrency market with a decline of about 5.8% . Though some say crypto currency concerns are being overblown, the decline across future markets signifies turbulence for traders who became early indicators of the broader market. Let's discover which cryptocurrencies are most vulnerable.
Ethereum (ETH)
Standing as the second largest followed cryptocurrency after Bitcoin may have a negative result in the market affecting its price and DeFi(Decentralized Finance) projects. ETh has already sunk around 20% of its network value with the current price being $2,480.11 following the announcement.
Binance Coin (BNB)
Binance Coin is associated with the Binance Exchange. This said to be the world's largest exchange has seen a declined value of $556 sinking 15% after the stricter U.S. regulations as they operate internationally on crypto trading platforms with potential sanctions.
Solana (SOL)
Solana is considered a leading blockchain for NFTs and DeFi applications. SOL is the first to experience a downturn amid the increase in market risk aversion. With a decrease of 8%, its current price stands at $194. It may also see a reduced investment in the coming days.
Ripple (XRP)
Ripple majorly focuses on revolutionizing cross-border payments. Starting today, this Fintech company has already started facing challenges due to possible disruptions in global trade flows on international transactions. It sank 23% followed by the trading tariffs announcement standing at $2 currently.
These cryptocurrencies saw a major downside followed by Bitcoin with many other altcoins following suit. Crypto market often spills over uncertainty, especially in traditional markets leading investors to pull back their riskier assets. With uncertainty over Trump's administration over a regulatory environment, Cryptocurrencies could further dampen investors with the current dip. For some traders and investors, this may seem like a hedge against inflation and government policies. The crypto market has always been unpredictable yet highly speculative but for now, remains highly reactive to geopolitical events. However, Risk takers will find this as an opportunity to potentially create long-term buying opportunities.
Author’s Profile: Prathyusha Reddy is a content writer fueled by a spark of creative curiosity, crafting compelling narratives across diverse topics. Having worked as a professional entertainment writer, I enjoy fractional fiction and poetry, often weaving words while immersed in music.
