The cryptocurrency market experienced significant fluctuations in the last 24 hours. Bitcoin 
$63,081, the largest cryptocurrency by market cap, lost 3% of its value, slipping below the $115,000 mark. Ether, the second-largest cryptocurrency, fell by 5.7%, while XRP saw a decline of over 7%. CoinDesk 20 index summarized the overall market downturn at 6%, with new U.S. customs tariffs emerging as a key driver behind these developments.
Global Economic Developments and Market Reflections
Former U.S. President Donald Trump’s introduction of new tariffs ranging from 10% to 41% on imported goods had a particularly significant impact on major trade partners such as Canada, the European Union, and Japan. These tariffs triggered the steepest weekly decline in Asian stock markets since April and led to the strengthening of the U.S. dollar. The effect also resulted in a rise in the U.S. Federal Reserve’s inflation indicator. With the core personal consumption expenditures (PCE) index reaching 2.8% year-over-year, expectations for a rate cut in September decreased, as data from Polymarket and CME FedWatch showed a reduction in rate cut expectations from 56% to 39% within the last 24 hours.
Market Behaviors and Current Status of Crypto Assets
Investors’ risk appetite diminished, with an increase in hedging in options markets. Short-term bearish bets on Bitcoin rose, while ether exhibited a more balanced or slightly positive outlook. Better-than-expected economic data caused investors to exercise more caution. In the crypto market, specific developments drew attention as well. Helium Network experienced a halving event reducing new token supply, and a new regulation for stable cryptocurrencies went into effect in Hong Kong. Several crypto assets announced new token unlocks and initial listings.
Movements in Market and Asset Prices
The cryptocurrency market’s decline affected stock and other markets as well. U.S. and Asian indices fell on a weekly basis, and European stock markets also suffered losses. Open positions in Bitcoin and ether futures contracted as investors adopted a more protective stance against short-term volatility spikes. In the spot market, Bitcoin and ether investment funds recorded net outflows and inflows of -$114.8 million and $17 million, respectively, though total fund assets remain substantial. A shift in risk perception in the derivatives market favored ether.
Blockchain, NFT, and Other Developments
The NFT market is observing a recovery. Thanks to a rise led by CryptoPunks, the total market capitalization of NFTs doubled in a month, reaching $6.4 billion. Technological advancements continue, with new hardware and platforms like Solana 
$74 Mobile entering the global market and sustained activity in Ethereum 
$1,829-based products. Additionally, many significant blockchain and cryptocurrency conferences and events are slated to occur in North and South America and Europe in the coming weeks.
Overall, the high volatility in the crypto market stands out, with investors being influenced by both global macroeconomic developments and intra-market technical indicators. New U.S. trade policies significantly shape the global economic outlook and the crypto market. The recent value increase in NFTs and new token launches also draw attention to the sector. Investors appear more cautious about the near-term uncertainty.
