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Highlights
- The top cryptocurrencies are currently showing a negative trend.
- Dogecoin is the top loser, while BTC, XRP, and ETH have also seen notable dips.
- Trump's criticism of China and the increasing odds of no interest rate cuts contribute to the market crash.
The crypto market is undergoing a substantial downturn, with major tokens such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and XRP seeing notable declines. This crypto price drop has left investors and analysts questioning the cause of this market slump.
Notably, today’s crypto price drop could be attributed to two main factors: President Donald Trump’s recent criticism of China on Truth Social, accusing them of breaching their trade agreement with the US, and the growing likelihood that the Federal Reserve won’t cut interest rates.
Crypto Market Crash: Bitcoin & Altcoins Bleed
The global crypto market has seen a severe downturn today, losing about $186 billion from yesterday’s high. As of press time, the total market cap stands at $3.24 trillion, down by 2.79% over the last 24 hours. Major cryptocurrencies are in the red, with Dogecoin taking the biggest hit among the top 10.
As per CoinMarketCap data, Bitcoin is currently trading at $103,587, down by 2.38% in a day and 4.3% in a week. The trading volume has also declined by 3.4% to $56.34 billion.
At the same time, Ethereum is exchanging hands at $2,513, marking a dip of 4.91% over the past 24 hours. XRP and BNB have also seen notable dips of 3.9% and 3.03%, respectively, over the past day. While XRP is trading at $2.12, BNB is at $653.50. Dogecoin has experienced a massive plummet of nearly 10% over the past 24 hours, currently trading at $0.1884. Significantly, the crypto price drops today, marking a notable reversal from the recent bullish trend.
Key Factors Behind the Crypto Market Decline
The crypto price drop today is mainly due to several reasons, including Trump’s tariff policies and the recent PCE inflation data. Yesterday, President Donald Trump shared a Truth Social post, alleging that China has violated the trade agreement with the US. His post read, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY.”
This statement has significantly shaken the crypto and stock markets. Though BTC rose to $106k following the post, it dropped to $104k soon, now reaching $103k.
In addition, the latest PCE report, which came favourably, hasn’t been enough to shift sentiment. This keeps the speculations of the Federal Reserve’s interest rate cuts in June very low. Polymarket predicts a near certainty of no interest rate cut on June 18, with odds at 96%.
Moreover, a massive options expiration added to the market’s woes. $12.1 billion in Bitcoin options and $2.13 billion in ETH options expired on Wednesday, sparking volatility as traders repositioned their portfolios.
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