The total crypto market cap dropped by $186 billion in just 24 hours. The current total stands at $3.35 trillion. This sudden drop has alarmed investors and triggered panic selling in the markets. 

Trump Crypto Market Effect

Two major reasons are behind this sharp market downturn. First, former President Donald Trump accused China of violating the U.S. trade agreement. In a post on Truth Social, Trump stated that China had “completely violated” the deal. The statement caused global markets to wobble. Bitcoin briefly surged to $106,000 after the post but quickly dropped back to $103,000. 

The second reason is the decreased likelihood of an interest rate cut by the Federal Reserve. Yesterday’s positive PCE inflation data reduced expectations of a rate cut. According to Polymarket data, there’s only a 4% chance of a rate cut on June 18. This led investors to pull out from risky assets. 

Additionally, $12.1 billion worth of BTC and $2.13 billion worth of ETH options expired, causing sharp price movements in the market. 

Political uncertainty and macroeconomic developments are putting pressure on the crypto market. Investors should proceed cautiously. Market volatility is expected to continue in the near future. 

Sharp Declines in Altcoins 

Bitcoin’s drop negatively impacted the altcoin market as well. Ethereum (ETH) fell by 4.5%, approaching below $2,500, while XRP declined by 3.9% to $2.13. Major altcoins like Dogecoin (DOGE), Solana (SOL), Cardano (ADA), Sui (SUI), Chainlink (LINK), and Avalanche (AVAX) saw losses ranging from 5% to 9%. 

Lower-cap altcoins suffered even steeper losses. Meanwhile, coins like Ethena (ENA), Injective (INJ), and PEPE recorded double-digit percentage drops. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Crypto Market Plunges: Bitcoin, Ethereum, Dogecoin See Sharp Losses appeared first on Coin Engineer.