In our recent assessments, we noted that cryptocurrencies could experience deeper losses in the coming hours. As this article was prepared, Bitcoin 
$77,196 prices fell below $82,000, dragging Ethereum 
$2,421 down under $1,700. What are the reasons behind this decline, and what expectations should we hold?
Why Are Cryptocurrencies Falling?
Before the implementation of additional taxes, moderate messages and signs of compromise were anticipated from Trump over the weekend. However, contrary to expectations, Trump maintains his resolve, and good news has not materialized. This indicates that tariffs will indeed be enacted, prompting the EU and others, just like China, to announce retaliatory measures.
In February, we witnessed how counter-retaliations turned into a senseless cycle. As tariffs continue to rise, stocks may experience deeper lows this week. The fear of this scenario could lead to a 5% drop in stock prices when markets open on Monday. Naturally, cryptocurrencies are also preparing for this scenario, albeit with a delay.
What Lies Ahead for the Crypto Market?
In the coming hours, we might see long upper wicks below key support levels. However, the true bottom is likely to manifest in the upcoming days unless we receive messages of easing or negotiations. Volatility is just beginning for cryptocurrency markets.
