The escalating trade war shakes the currency circle! Ethereum falls more than 6%, cryptocurrencies "blood flowing like rivers"

The second largest cryptocurrency Ethereum is leading a new wave of digital asset sell-off, as US President Donald Trump insists on imposing 104% tariffs on many Chinese goods, making hopes of avoiding a brutal trade war seem dim. Ethereum fell over 6% on Wednesday, dropping to its lowest intraday level since March 2023, currently trading at $1432. The largest cryptocurrency Bitcoin fell over 3%, but the decline has since narrowed. Trump and senior government officials hinted on Tuesday that the US is open to reaching agreements and may reduce or lift high tariffs on dozens of countries. However, after Trump threatened to escalate tariffs on China, the broader financial markets experienced a new round of turmoil, with Asian stock markets falling. Sean McNulty, head of derivatives for FalconX in the Asia-Pacific region, said, "It seems that people have given up on the significant recovery of cryptocurrencies in the first half of this year." Tariff war continues, Ethereum and Bitcoin plummet McNulty stated that put options providing downside protection for Ethereum and Solana were heavily bought overnight, with the next key support level for Bitcoin around $65,000.