Cardano and Solana prices stumbled at the start of the week, trading in red on Monday. This decline followed a dramatic fall of over 15% in the previous week. The sell-off was spurred by the recent announcement of tariffs by former US President Donald Trump. On Saturday, these tariffs were imposed on key trading partners, including China, Canada, and Mexico, setting off a ripple effect across financial markets.
The tariffs exerted substantial selling pressure on the cryptocurrency market. The US Dollar gained strength in response to Trump's tariff announcements, impacting currency pairs significantly. Notably, the EUR/USD pair faced heavy bearish pressure and descended toward 1.0200 on Monday. Similarly, the GBP/USD continued its downward trajectory for the fifth consecutive session, trading below 1.2300.
The broader financial landscape experienced turbulence as well. Gold, which had reached a record high above $2,810 on Friday, retracted from this peak and traded below $2,790 early Monday. The negative shift in risk mood contributed to the strengthening of the US Dollar, further affecting various financial markets.
The imposition of tariffs on major economies such as China, Canada, and Mexico has led to heightened uncertainty. These measures have increased volatility across various asset classes, with cryptocurrencies being particularly vulnerable to sudden market changes.