Cardano and Solana prices faced significant downturns on Monday, continuing their decline from the past week. Both cryptocurrencies saw their values plummet by over 15% last week. This decline coincides with the implementation of US President Donald Trump's tariffs on major trading partners this past Saturday, which has exerted notable selling pressure across the cryptocurrency market.
The broader crypto market remains within striking distance of its all-time peak achieved last Friday. However, uncertainties surrounding the potential economic repercussions of Trump's trade tariffs are influencing market dynamics. While these concerns provide some support to the market, they also contribute to heightened volatility. Market participants are weighing the implications of these tariffs on global trade and economic stability.
The tariffs imposed by Trump on imports from Canada, Mexico, and China have resulted in a boost for the US Dollar. This strengthening of the dollar is creating downward pressure on various currency pairs, including GBP/USD, which is trading near 1.2300 for the fifth consecutive session. The shift in risk sentiment following the tariff announcements has increased demand for the US Dollar as a safe-haven asset.
In European trading on Monday, the EUR/USD pair experienced heavy bearish pressure, hovering near 1.0250. Meanwhile, gold prices have managed to recover a substantial portion of their intraday losses. During the first half of the European session, gold climbed closer to the $2,800 mark, reflecting its appeal as a hedge against uncertainty and inflation.
The overall sentiment in the cryptocurrency market remains cautious amid ongoing discussions about the potential impacts of Trump's tariffs. As investors navigate these uncertain times, they are adjusting their portfolios to mitigate risks associated with geopolitical developments and economic policies.