After weeks of stagnation when it seemed that Pi Network’s native token is immutable to any market moves in either direction, the asset has plummeted hard in the past 12 hours or so.
Geopolitical Tensions Impact Crypto Market
The most obvious reason for this market movement is not related to anything within the Pi Network ecosystem. Instead, all eyes are focused on the escalating tension between the US and the EU. The POTUS announced a new set of 10% tariffs against eight countries as he is trying to purchase Greenland from Denmark.
The European bloc responded by holding an emergency meeting, while French President Macron urged the union to use a “trade bazooka,” which would severely limit the US’s access to European markets.
Although the crypto market remained flat at first as these developments unfolded, it plunged earlier today when Asian stock markets and some futures opened. Unlike previous volatile instances for the rest of the crypto market, this time, PI wasn’t spared.
Pi Network Token Performance
The token missed out on the early January rally when BTC skyrocketed from under $88,000 to $98,000 in a matter of days, while many alts posted double-digit gains. Now, though, PI is down by more than 7% daily and sits below $0.19. Moreover, it slipped to $0.183 earlier today, which is just inches away from the October all-time low of $0.172.
Token Unlocking Schedule as a Contributing Factor
Another possible reason behind PI’s overall price instability, not so much about its sudden slump today, is the token unlocking schedule. Data from PiScanUnlock shows that the average number of daily unlocks stands at over 4.6 million, which could intensify the immediate selling pressure once investors get hold of the coins they have been waiting for a while.