What explains the recent declines in the crypto market?

The answer lies in the new tariffs announced by Trump against 8 European nations: Denmark, Germany, France, Spain, Italy, the Netherlands, Belgium, and Sweden.

Why do they provoke such drastic reactions in digital assets? Essentially, it's quite simple. When a protectionist measure of this magnitude is announced, institutional and retail investors run for the exits. They don't think twice: sell first, ask questions later.

The announcement of tariffs creates uncertainty about the global economic outlook. Risk assets like Bitcoin and altcoins are always the first to suffer when there is news of trade tension. The logic: if the global economy slows down, why hold exposure to cryptocurrencies? Better to liquidate positions now.

This is the reality of the crypto market: extremely sensitive to any macro wind that blows.