From Trade Wars to Market Fears: Inside This Week's Crypto Rollercoaster
Picture this: You wake up Monday morning, check your crypto portfolio, and see a sea of red. If this was your reality this week, you're not alone. The digital currency world just took one of its signature wild rides, and I'm here to break down exactly what happened.
Things got interesting when former President Trump dropped what many are calling a financial bombshell. His announcement of new tariffs - 25% on Mexican and Canadian goods, plus 10% on Chinese imports - sent shockwaves through global markets. While he later hit pause on the Canadian and Mexican tariffs for 30 days, the mere threat of a full-blown trade war was enough to spook investors.
The impact? Our beloved crypto market took a serious hit: - Ethereum (ETH) plunged to $2,100, kissing goodbye to 47% of its yearly gains - Dogecoin (DOGE) tumbled to $0.2060, hitting levels we haven't seen since early November - XRP wasn't spared either, dropping to $1.8010, also down 47% from its 2025 peak - The broader market initially dipped to $3 trillion before bouncing back to $3.3 trillion by Friday
Remember all the excitement about Bitcoin and Ethereum ETFs? Well, the honeymoon phase might be over. This week saw net outflows from spot Bitcoin and Ethereum funds, suggesting institutional investors might be getting cold feet. Even MicroStrategy, our reliable Bitcoin whale, decided to take a breather after twelve straight weeks of Bitcoin shopping, leaving their impressive stack at 471,000 coins.
The crypto fear and greed index - our market's emotional thermometer - dropped to 35, hitting lows we haven't seen since last October. History tells us this isn't great news - when fear dominates, prices typically take a hit. Adding to the pressure, the altcoin season index slipped to 33 from its yearly high of 47, suggesting Bitcoin's still the popular kid at the crypto party.
But here's where things get interesting: Technical analysts are spotting some potentially bullish signals. A hammer candlestick pattern has formed on the weekly chart for altcoins, while Bitcoin's showing a bullish flag pattern. For the non-traders among us, these patterns often hint at possible rebounds.
Whether you're HODLing through the storm or looking for buying opportunities, remember: Market turbulence is just part of the crypto journey. While the current landscape might look stormy, seasoned crypto enthusiasts know that in this market, the only constant is change.
