XRP and Dogecoin Experience Volatility After China Tariffs Impact Crypto Market
Recent trade tensions have caused significant fluctuations in the cryptocurrency market, with XRP and Dogecoin initially surging before dipping as China responds with tariffs.
Overview
XRP and Dogecoin initially saw a boost of up to 20% following a buy-the-dip strategy in the crypto market but faced a reversal as China announced retaliatory tariffs against the U.S. This situation has left traders and analysts divided on the ramifications for the future of cryptocurrency.
Key Points
- Market Responses: Cryptocurrencies like XRP, Dogecoin, Solana (SOL), and Cardano (ADA) have increased by nearly 3%, while Bitcoin (BTC) and Ethereum (ETH) have risen close to 4%.
- Expert Opinions: Ben El-Baz from HashKey Global remarked that the U.S.-China tariff conflict could dampen risk appetite and jeopardize the positive market sentiment sustained in the past year. He noted that damage from tariffs could be temporary if the U.S. implements more crypto-friendly policies.
- Similarly, Min Jung of Prestro Research indicated that despite Bitcoin being valued as ‘digital gold’, it still exhibits traits of a high-risk asset, especially under the pressure of international trade conflicts.
Conclusion
The U.S. trade policy under President Trump significantly affects cryptocurrencies, pivoting investor attention from broad pro-crypto stances to immediate market responses. With ongoing volatility and uncertainties regarding trade relationships, the market’s future hangs in the balance as it awaits further developments.
