What Happened?
The global cryptocurrency market experienced a downturn, with the cap falling by 3.8% to $3.97 trillion. Most major assets showed losses in the last 24 hours, however, trading volume increased to $190.3 billion. Furthermore, President Donald Trump’s proposal for a $100,000 H-1B visa fee has injected political risk into the fragile macro environment, causing Bitcoin to slip as investors turn to safer assets.
Who Does This Affect?
This downturn affects both investors and traders within the crypto market. The decline in value of the top cryptocurrencies like Bitcoin and Ethereum directly affects their holders. Additionally, the proposed H-1B visa fee by President Trump targets India’s $280 billion IT outsourcing sector, which could lead to trade tensions, legal battles and rising corporate costs.
Why Does This Matter?
This matters because it indicates a potentially volatile period for the crypto market, causing uncertainty for investors and traders alike. The market cap dip along with the increased trading volume suggests a higher sell-off rate. Furthermore, the proposed H-1B visa fee increases risks and could provoke defensive moves towards safer assets – impacting the wider financial market.