The cryptocurrency market, which recently set a new record with a total capitalization of $4.4 trillion, is currently in a tailspin following a warning from U.S. President Donald Trump regarding China. The correction has led to significant losses across various altcoins.

Ethereum, one of the major digital currencies, has been among the most affected, experiencing a nearly 6% drop and falling below $4,100, with projections suggesting it could decline further towards $4,000, marking a 10.6% weekly loss as reported by CoinGecko.

Other major altcoins, including SOL and DOGE, have also suffered, both dropping over 4.5% and struggling to maintain values above $210 and $0.24 respectively.

In contrast, Ripple’s XRP has seen a milder setback, with a 3% decrease over the last 24 hours but a more substantial 11% decline over the past week, testing critical support levels at $2.70.

Bitcoin has been the leader in this downturn, falling from over $121,000 to approximately $117,000 following Trump’s comments, with analysts suggesting that a significant buying wall could provide some support at $116,700. Market analyst CW believes that if Bitcoin closes below $117,600 on a weekly basis, it might set the stage for a further drop to around $115,000.

Conversely, Satoshi Flipper expressed a more optimistic outlook, stating that this widespread sell-off, which has impacted global financial markets like the S&P 500, could increase the chances of the U.S. Federal Reserve implementing two more interest rate cuts of 25 basis points, branding the current market corrections as a “monster discount.”

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Liquidation numbers from CoinGlass reveal a sobering scenario, with total wrecked positions reaching $900 million, affecting over 250,000 traders.