Why Cardano Is Plummeting Today
Cardano (CRYPTO: ADA) is plunging on Thursday. The cryptocurrency lost 8.6% as of 1:50 p.m. ET and was down as much as 9% earlier in the day. The decline comes as the broader crypto market retreats amid growing economic concerns.
President Donald Trump's sweeping tariffs, announced yesterday from the White House, have triggered a risk-off sentiment that's hitting the cryptocurrency market particularly hard. The macro news overshadowed a positive announcement from the Cardano Foundation.
Trump announced extensive new tariffs on imports from countries around the globe yesterday from the White House Rose Garden. The tariffs are levied on almost every trading partner the U.S. has and their scale and breadth has shocked the market. Some investors had hoped the tariffs would be more limited in scope.
The fear that the tariffs have induced has created a "risk-off" environment -- that is, a market in which investors move away from speculative assets toward secure assets. Investors fear that the tariffs will lead to higher inflation and rising interest rates, exacerbating the issue. Cryptocurrency in general is perceived as risky and Cardano was not spared.
The body responsible for developing and maintaining Cardano announced Veridian, an open-source digital identity platform intended for both individuals and organizations. Veridian uses open-source "key event receipt infrastructure" (KERI), decentralized identifiers, and "authentic chained data container" (ACDC) credentials to verify identities and authenticate online communication.
Alongside the platform itself, the foundation released the Veridian Wallet, which allows users to manage their credentials, private keys, and identifiers. The technology is designed to increase trust in the Cardano blockchain, potentially expanding its enterprise use cases. The new technology highlights the foundation's commitment to pushing Cardano forward. Still, given the state of the market, I would hold off on Cardano for now.
Before you buy stock in Cardano, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Cardano wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $676,774!*
Now, it's worth noting Stock Advisor's total average return is 824% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of April 1, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cardano. The Motley Fool has a disclosure policy.
Why Cardano Is Plummeting Today was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Here's how Wall Street sees the Israel-Iran conflict affecting recession odds
The Israel-Iran conflict raises concerns over a potential closure of the Strait of Hormuz. Goldman Sachs and other banks warn of recession risks if global oil supply is disrupted. Higher oil prices would impact global economic growth and inflation. Recession risks have come down significantly from their peak in April after Donald Trump's tariff announcements, but the Israel-Iran conflict has ignited fresh concerns about the path of global economic growth. After US airstrikes on Iran's nuclear facilities over the weekend, markets are worried about Iran blocking the Strait of Hormuz, one of the world's most important oil-shipping chokepoints. Over the weekend, the odds of Iran closing the Strait of Hormuz spiked to over 50% on Polymarket. The risk of further military escalation is a major reason Goldman Sachs said that it hasn't cut its recession probability, which hovers at 30%. With roughly 20% of the world's oil passing through the strait, a closure would bottleneck oil supply and send oil prices, and subsequently inflation, higher. At current levels around $73 a barrel of US oil and $76 a barrel for Brent, crude oil prices have increased around $10 per barrel since early June, which wouldn't be enough to pose a big threat to inflation and GDP growth, Jan Hatzius, the bank's chief economist, wrote in a note over the weekend. However, he sees the possibility of a much larger price move "in a tail scenario where the conflict expands significantly further and/or the Strait of Hormuz is closed. In that tail scenario, the risk of recession would climb sharply." In a worst-case scenario, oil volumes through the Strait of Hormuz could decrease by 50% for one month, then remain down 10% for another 11 months, Goldman Sachs commodities analysts predicted. That would lead Brent oil prices to peak at $110 per barrel before coming down to $95 per barrel in the fourth quarter of 2025. While Goldman Sachs' base case assumes Brent oil prices fall to $60 by year-end and deliver a modest boost to GDP growth, disruption in the energy supply could reduce global growth by 0.3 percentage points and send inflation rising by 0.7 percentage points. With regards to markets, Morgan Stanley also sees rising oil prices as a potential negative catalyst that sparks a potential 19% drop in the S&P 500. According to Mike Wilson, the bank's chief investment officer and chief equity strategist, a 75% year-over-year rise in oil prices has historically been disruptive enough to impact the business cycle and lead to a recession. Some forecasters see the potential for an even higher spike in crude prices. A 75% increase in oil prices isn't off the table, JPMorgan said. Commodities analysts at the bank see a 21% chance of a major disruption to energy production in the Persian Gulf, which could cause oil prices to rise to $120-$130 a barrel. However, such a scenario is not the bank's base case. JPMorgan sees crude oil averaging down to around $60 a barrel by the end of the year and into 2026, barring severe geopolitical escalation. Morgan Stanley's Commodities Strategist Martijn Rats believes a 75% spike in oil prices would only emerge as a result of prolonged supply disruption in the Strait of Hormuz. "Thus, while we're respectful of the risks, there's a long way to go on this basis," Wilson wrote. Read the original article on Business Insider Sign in to access your portfolio
Bloomberg
36 minutes ago
- Bloomberg
Gold Falls as Haven Demand Ebbs After Trump Announces Ceasefire
Gold retreated as haven demand ebbed after US President Donald Trump announced that Israel and Iran had agreed to a ceasefire that would start about midnight Monday in Washington. Bullion fell as much as 0.6% to below $3,350 an ounce in early Asian trading. Trump, who made the surprise announcement on his Truth Social platform days after ordering airstrikes on Iran's nuclear facilities, said the accord is aimed at a lasting end to the fighting. There was no immediate comment from Iran or Israel.
Yahoo
37 minutes ago
- Yahoo
Shares cheered in Asia as Trump announces Iran-Israel ceasefire
(Corrects day in paragraph 1.) By Wayne Cole SYDNEY (Reuters) -Wall Street futures rose and the dollar eased in Asia on Tuesday after U.S. President Donald Trump said Iran and Israel had agreed to a ceasefire, sending oil prices into a deep dive as concerns over supply disruptions ebbed. Writing on his Truth Social site, Trump implied a ceasefire would go into effect in 12 hours and then the war would be considered "ended". Oil prices fell another 4%, having already slid 9% on Monday when Iran made a token retaliation against a U.S. base which came to nothing and signalled it was done for now. However, both Israel and Iran continued their missile strikes, making investors cautious about piling into risk assets just yet. "This lifts some of the geopolitical uncertainty surrounding the markets, although, for the most part, equity investors have been kind of shrugging the uncertainty off," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida. "It certainly sounds like a significant milestone, and I hope it's true." With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, U.S. crude futures fell another 4% to $65.75 per barrel. S&P 500 futures gained 0.3% in early trade, while Nasdaq futures added 0.5%. Nikkei futures traded up at 38,905, well above the cash close of 38,354. Futures for 10-year Treasuries fell 6 ticks as the need for safe havens lessened, while interest rate futures slipped as investors rowed back a little on expectations for rate cuts. The market had rallied on Monday after Federal Reserve Vice Chair for Supervision Michelle Bowman said the time to cut interest rates was getting nearer as risks to the job market may be on the rise. Fed Chair Jerome Powell will have his own chance to comment when appearing before Congress later on Tuesday and, so far, has been more cautious about a near-term easing. Markets still only imply around a 22% chance the Fed will cut at its next meeting on July 30. News of the ceasefire saw the dollar extend an overnight retreat and slip 0.1% to 145.92 yen, while the euro edged up 0.1% to $1.1589. The yen and euro benefited from the slide in oil prices as both the EU and Japan rely heavily on imports of oil and liquefied natural gas, while the United States is a net exporter. The risk-on mood saw gold prices ease 0.4% to $3,353 an ounce. Sign in to access your portfolio
