Cryptocurrency Rollercoaster: Bitcoin Dips, XRP and Dogecoin Plummet Amid Global Economic Turmoil

Crypto Markets Grapple with Macro Headwinds as Bitcoin and Altcoins Decline

In a lackluster day for risk-on assets, the cryptocurrency market is feeling the pressure from heightened U.S. steel tariffs and weakening economic indicators. Bitcoin has seen a modest decline, while several major altcoins have posted steeper losses, reflecting broader global uncertainties—including the ongoing conflict in Ukraine and other macroeconomic challenges.

Market Performance Highlights

XRP and Solana, the native token of the smart contracts network, dropped by 2.2% and 1.2%, respectively. Meanwhile, Dogecoin, the popular meme coin, fell nearly 3%. Bitcoin experienced a milder dip, hovering just below the $105,000 mark with fractional losses.

Mark Connors, Chief Investment Strategist at Risk Dimensions, noted, "The global macro backdrop has not helped, including the recent escalation in the Ukraine war and new steel tariffs. However, Bitcoin's movements within a 3-5% range are rarely tied to a single factor."

Economic Pressures Weigh on Sentiment

Crypto markets have struggled over the past two weeks after an early May rally. The downturn follows renewed trade tensions, with the U.S. administration increasing tariffs on steel and aluminum rather than easing trade restrictions as previously anticipated.

Recent economic data, including the ADP jobs report and the Services PMI, have also signaled a slowing economy, further dampening investor confidence in risk assets like cryptocurrencies.

Ethereum Bucks the Trend

Despite the broader market weakness, Ethereum has shown resilience, gaining 0.7% in today's session. Over the past two weeks, ETH has climbed 4%, while Bitcoin and other altcoins have trended downward. Ethereum has surged 44% over the past month, and its ETFs have attracted nearly $190 million in inflows—outperforming Bitcoin ETFs for the first time in their history.

As the market navigates these challenges, Wintermute, a leading crypto market maker, cautioned in a recent note: "With July 9th approaching, bulls are hoping for concrete agreements to stabilize sentiment—otherwise, headline-driven volatility could intensify."