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The Cryptocurrency Market Turns Red as Trump and the US Continue to Threaten Tariffs
Cryptocurrencies really took a hit on Saturday, a few days after the US tax threat caused market turmoil. Market chaos ensued following President Donald Trump’s executive order on January 31st, imposing tariffs on imports from Mexico, Canada, and China. Although the tariffs on Mexico and Canada have been temporarily suspended, this move was enough to cause investors to worry and trigger a sell-off in both stocks and digital assets. In addition to the chaos, the cryptocurrency market has been flooded with over 700 fraudulent tokens exploiting the name of Trump, according to the Financial Times report. The wave of fraud has further eroded investor confidence, leading to increased volatility.
Rumors of Kanye West releasing a token also had little impact on this activity. Despite the recession, analysts say the next move in the cryptocurrency market will depend on whether the tariff threats escalate and how investors react to the uncertainty surrounding these new meme coins.