Cryptocurrencies Plunge amidst Disappointment over Summit and Concerns of Escalating US-China Tariff War
Cryptocurrencies have plummeted in value. The decline is attributed to ongoing disappointment from a cryptocurrency summit and concerns about the escalation of the US-China tariff war impacting cryptocurrency prices.
Ripple, the fourth-largest by market cap, at one point fell more than 10% due to the sustained disappointment following the cryptocurrency summit. On the morning of the 10th, Ripple was reported to be down 6.90%, trading at $2.18, as per CoinMarketCap, a global coin tracking website. Earlier that morning, around 3 AM, Ripple had dropped over 10% to $2.09. Ripple is currently trading between a high of $2.36 and a low of $2.09.
Bitcoin is down 3.72% from the previous day, trading at $83,028. Ethereum, the second-largest by market cap, has dropped 7.77%, currently trading at $2,046. Other major cryptocurrencies known as altcoins (any coins other than Bitcoin) are also experiencing sharp declines. Solana, ranked 6th by market cap, is down 6.07%, while Cardano, ranked 8th, has fallen 9.85%.
The larger decline in altcoins compared to Bitcoin is due to dashed expectations that the cryptocurrency summit would benefit altcoins. The sweeping decline in major cryptocurrencies follows the first cryptocurrency summit at the US White House on the 7th, where it was confirmed that there would be no significant purchase of Bitcoin. Furthermore, an executive order signed by US President Donald Trump on the 6th reiterated that the government would not purchase cryptocurrencies with state funds.
The market had hoped for measures from the US government involving large-scale purchases of cryptocurrencies like Bitcoin to prepare a cryptocurrency reserve.