The cryptocurrency market has experienced a significant decline over the past few days following Donald Trump’s announcement of a 100% tariff on Chinese imports. Many retail investors blamed the tariffs for the market’s steep fall, according to data platform Santiment. The firm said traders often look for a single event to explain significant downturns.
Discussions about the US-China trade situation surged across crypto communities following the price drop. Bitcoin fell more than 10% within a single day, with Binance futures briefly touching $102,000. Santiment described this as a “rationalization” pattern, where retail traders quickly agree on one cause for a market crash.
However, analysts argued that tariffs were not the only factor at play. They pointed to internal weaknesses within the such as high leverage and risk exposure. These underlying issues magnified the effects of the news event.
