Bitcoin falls as global trade tensions escalate

Bitcoin and Ethereum dropped 5.3% and 11.8%, respectively, on Monday amid escalating global trade tensions triggered by the US administration's policies. The correlation between traditional asset markets and cryptocurrencies became particularly evident in their reaction to Trump's latest measures, COINOTAG reports.

As analysts from the online platform say, investors are eager to divest from risk assets, putting downward pressure on crypto tokens. Bitcoin saw $890.9 million in liquidations over the past day.

The cryptocurrency market's trajectory will depend on several key factors: the global economic response to US tariffs, clarity on Donald Trump's trade strategy, and the Federal Reserve's monetary policy. COINOTAG experts shared this assessment.

Historical trends reveal that digital assets frequently display volatility ahead of similar dynamics in traditional markets. COINOTAG observes that the current situation exemplifies this pattern.