Why is Crypto Market Down Today? Bitcoin and Altcoins Struggle

While traditional markets reacted sharply to Donald Trump’s shifting tariff plans, crypto markets have stayed surprisingly steady – at least on the surface. But dig a little deeper, and there are signs the calm might not last. Bitcoin took a 2% hit over the weekend, and fears around new US-China tariffs are starting to ripple through the digital asset space.

Can crypto hold its ground?

Tariff Concerns Hit Crypto

Bitcoin fell to $83,482 during Asian trading hours, giving up some of last week’s gains and falling behind the stock market’s performance. Ethereum also slipped below $1,600, while other altcoins showed mixed results. The pullback came as traders worried that new tariffs could target key Chinese tech products like smartphones, semiconductors, and laptops.

Trump Provides Clarity

In a Truth Social post on Sunday, Trump said that some electronics would be temporarily excluded from the new 10% tariffs. However, he made it clear that these items would still face a separate 20% tax due to national security and fentanyl-related concerns.

He also stressed that no country, including China, would get special treatment when it comes to unfair trade practices. Commerce Secretary Lutnick suggested more tech-related tariffs could be announced in the next two months. This temporary delay gave a boost to the stock markets.

Stocks Rebound, But Crypto Struggles to Keep Up

The Nasdaq futures rose over 1%, and S&P futures gained 0.7% during early trading hours. But the crypto market didn’t show the same strength.

Greg Cipolaro, Head of Research at NYDIG, pointed out that markets usually react sharply in uncertain times, yet crypto hasn’t shown major signs of stress so far. Last week, traders were optimistic as inflation appeared to be easing, but that sentiment faded with rising global tensions and slowing institutional investment in US crypto ETFs.

Emergency Fed Rate Cut Hopes Fade

Expectations for an early Federal Reserve rate cut—possibly before June—have dropped. This is mainly because Trump’s tariff plans could push inflation higher. If interest rates stay high, it could hurt crypto markets further. Analysts warn that if Bitcoin falls below $81,000, it could lead to more selling and increased pressure on the market.

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Bitcoin and Altcoin Overview: Key Levels to Watch

Bitcoin is currently trading at $84,359, up more than 9% over the past week. However, it’s still down 22.5% from its January high of over $108,000. Analyst Ali Martinez says $86,000 is a key resistance level. A rejection could push Bitcoin back to $79,000, while a breakout might drive it up to $97,000.

Ethereum is still struggling to reclaim the $1,700 mark and has been stuck around $1,600 throughout the week. XRP is showing strong gains, now at $2.13 and up more than 20%. Solana is trading at $132.37, up over 30% for the week, though it’s down slightly—more than 1%—in the past day.

Mantra (OM) Token Plunges

The Mantra (OM) token crashed over 90% on Sunday, falling from nearly $6 to below $0.40. The project blamed “reckless liquidations” for the drop. This sharp fall has raised new concerns about the role of centralized exchanges and the risks tied to Real-World Asset (RWA) tokens.

Market Sentiment Analysis

According to data from CoinMarketCap, the Crypto Fear and Greed Index is currently at 29, signaling “Fear”—a slight improvement from last week’s “Extreme Fear.” While sentiment has improved a bit, the market remains on edge.

As tariffs heat up and inflation fears creep back in, crypto might be headed for another storm.

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