Cryptocurrencies associated with former President Donald Trump and tech mogul Elon Musk, The TRUMP and Dogecoin have dropped in value.
The significant fall is a result of the ongoing tariff disputes initiated by the US President.
On Monday, February 11, Trump signed executive orders to impose 25% tariffs on steel and aluminium imports from March 12, ramping up a long-promised trade war despite warnings from Europe and China.
His words:
Trump also issued a separate order for steel, which said it would apply to all imports from the same countries the aluminium tariffs hit, as well as to Brazil, Japan, and South Korea.
On Monday, February 10, showed that TRUMP reached a new all-time low of $14.29, dropping 11% in 24 hours.
The decline raised concerns, as the currency’s critical support level is $16.00.
However, in the early hours of Tuesday, at the time of writing, it had recovered to $16.50.
Despite the recovery analysts believe the bearish market conditions make a full recovery impossible.
Leadership reports that traders were shifting their stance, now favouring short positions over long bets.
Also, funding rates for TRUMP have declined to their lowest levels since mid-January, signalling a surge in short contracts.
This shift indicated that traders were betting on further losses rather than a potential rebound.
With fewer investors for the long term and without a change in market conditions, this negative outlook is likely to persist, keeping TRUMP’s price under pressure.
Similarly, the last seven days have been rough for Dogecoin, the cryptocurrency backed by the world’s richest man and close ally of Trump, Elon Musk.
On January 17, Dogecoin’s market cap was above $60 billion. According to Forbes, that figure has dropped to $39.32 billion as of February 11.
At the time of writing, Dogecoin is priced at $0.25.
Also, Musk’s net worth is now below $400 billion for the first time since Trump came into power.
Forbes reports that Musk lost $6.1 billion on Monday, bringing his net worth down to $391.3 billion.
TimesNow.com.ng earlier reported that American rapper and billionaire Kanye West, aka Ye, has caused an uproar across social media after sharing how he was offered a $2 million offer to promote a cryptocurrency scam.
