"Trump's 100% tariff on China causes crypto asset market crash... shakes market structure"
Summary
- Said President Trump's 100% tariff on China remark caused the crypto asset market crash.
- Analyzed that high leverage and price declines led to a surge in automatic liquidations on decentralized exchanges (DEX), and that Ethereum's funding rate fell to –39% in the short term.
- Emphasized that this crash was an unavoidable adjustment due to liquidation deleveraging, and that it will be an opportunity to resolve the market's structural overheating.
An analysis said U.S. President Donald Trump produced a crypto asset (cryptocurrency) crash that will go down in history and had the effect of completely upending the market structure.
On the 13th (Korea time) Marcus Thielen Matrixport analyst said in a report, "President Trump's remark about imposing a 100% tariff on China caused market overheating and high leverage situations to fluctuate sharply," and analyzed, "in particular, automatic liquidations on decentralized exchanges (DEX) due to price declines surged."
Thielen explained, "Notably, Ethereum (ETH)'s funding rate fell temporarily to –39%, marking the largest adjustment in the past year," and "the resulting price plunged from 4700 dollars to the 3700-dollar range, clearing most overheated positions in the market."
Regarding this, Thielen emphasized, "This adjustment is an inevitable result of liquidation deleveraging," and "amid reduced liquidity, only a few profited while many incurred losses. This crash will serve as an opportunity to relieve structural overheating of the crypto asset market."
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
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