Cryptocurrency prices have dropped, particularly Bitcoin and XRP, following increased global trade tensions. The largest cryptocurrency by market value, Bitcoin, fell 4.8% to $76,137 over the past 24 hours due to China’s plan to impose an 84% tariff on US goods. This escalation in trade tensions led to a decrease in other cryptocurrencies such as XRP (down 8.9%), Ether (down 8.2%), and Solana (down 7.3%). Cryptocurrencies have generally moved in line with equities markets during the recent market turmoil.
However, if the US avoids recession and interest rates decrease, it could lead to an increase in cryptocurrency prices. This is due to investors seeking riskier assets like cryptocurrencies. The Federal Reserve will meet on May 6-7, where signs of faster rate cuts may boost cryptos.
Source: https://www.barrons.com/articles/bitcoin-xrp-prices-cryptos-91cd9695