XRP and Dogecoin plummeted more than 10% Friday, leading losses among major cryptocurrencies after fresh U.S. tariffs on China rattled Asian markets. The decline added to what analysts described as an already tumultuous week for digital assets.
Bitcoin fell 7% to nearly $79,000, reaching its lowest level since November. The world's largest cryptocurrency has now dropped nearly 30% from its January peak of over $108,000.
Ether, Cardano's ADA and BNB Chain's BNB faced similar challenges, each sliding at least 9%.
The overall cryptocurrency market capitalization decreased 8% to $2.7 trillion, erasing all gains made since President Donald Trump's election in early November. The broad-based CoinDesk 20 index dropped nearly 9%.
"On a YTD basis, ex-BTC tokens and trading sentiment have struggled mightily with liquidity being depleted from the numerous memecoin runs, and BTC also buckled from the weight of ETF selling, which hit a record high last week," Augustine Fan, head of insights at SignalPlus, told CoinDesk in a Telegram message.
Strong earnings from Nvidia on Wednesday failed to offset growing market pessimism. Global equities faltered amid renewed tariff concerns, economic slowdown signals and overstretched market positioning. Traders noted this uncertainty naturally affected cryptocurrency markets given Bitcoin's high correlation with the S&P 500 index.
Friday's cryptocurrency losses mirrored declines in Chinese stocks, which slumped after Trump announced a new 10% tariff on Chinese imports. The move intensified concerns about escalating trade tensions between the world's two largest economies. This additional tariff supplements an existing 10% tax on Chinese goods implemented earlier this month.
The timing of the tariff announcement comes just before China's annual National People's Congress meeting next week, where leaders are expected to outline economic plans and growth targets. Analysts suggest any Chinese stimulus measures could impact Bitcoin and broader cryptocurrency prices, potentially serving as a market catalyst.
The sentiment remains bearish among some Bitcoin traders until then. "Bullish option speculators are throwing in the towel as well, with volatility coming lower against a lower spot price as calls are being dumped in favour of puts," Fan said. "Finally, concerns over MSTR (-10%) are adding an extra element of risk to BTC, given their convertible funded buying, putting bearish sentiment at a near-term extreme on many technical indicators."
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.