The crypto market is facing heightened volatility amid global economic uncertainty and rising trade tensions, but industry experts argue this turbulence is a natural part of the financial cycle rather than a sign of decline.
According to Binance, global trade protectionism especially new U.S. tariffs on Canada and the EU—has triggered a “risk-off” shift, prompting investors to exit crypto and equities in favor of safe havens like gold and bonds.
As a result, the total crypto market capitalization dropped by nearly 26%, with Bitcoin plunging almost 15% in a day its worst since the 2020 pandemic crash. Ethereum’s volatility also spiked significantly.
Crypto assets, now more correlated with equities and increasingly gold, are showing sensitivity to macroeconomic shocks rather than internal industry issues. Binance notes this shift may change how institutional investors view digital assets.
Experts like Ashish Singhal of CoinSwitch and Himanshu Maradiya of CIFDAQ stress that volatility is not new, but part of crypto’s long-term growth journey. They urge investors to stay informed and focus on strategic, long-term investments rather than reacting emotionally.
While volatility may persist, stabilization and renewed growth are possible if macro conditions improve and crypto continues evolving as a mainstream asset class.
