At a Glance
- Pi Network’s token dropped over 7% in 24 hours, falling below $0.19
- Escalating US-EU trade tensions triggered the crypto-wide sell-off
- Daily token unlocks of 4.6 million add ongoing selling pressure
- Why it matters: PI holders face continued volatility from both macro events and supply increases
Pi Network’s native cryptocurrency has broken its weeks-long stagnation with a sharp decline, falling more than 7% in the past 24 hours to trade below $0.19.
The sudden price movement marks a significant shift for the token, which had remained largely immune to broader market volatility for weeks. According to CoinGecko data, PI slipped to $0.183 earlier today, coming within striking distance of its October all-time low of $0.172.
Trade War Triggers Crypto Selloff
The primary catalyst for PI’s decline stems from escalating international trade tensions rather than issues within the Pi Network ecosystem. President Trump announced a new set of 10% tariffs against eight countries as part of his administration’s efforts to purchase Greenland from Denmark.
The European Union responded swiftly to the tariff announcement:
- Held an emergency meeting to coordinate response
- French President Macron urged using a “trade bazooka”
- Proposed measures would severely limit US access to European markets
While cryptocurrency markets initially remained flat as these developments unfolded, the situation changed when Asian stock markets and futures opened. The resulting market-wide decline has affected PI along with other cryptocurrencies, breaking its pattern of remaining untouched during previous volatile periods.
Missed Rally, Caught Selloff
PI’s recent performance highlights its unique market behavior. The token notably missed participating in early January’s cryptocurrency rally when Bitcoin surged from under $88,000 to $98,000 in days, while many alternative cryptocurrencies posted double-digit gains.
Now, with markets trending downward, PI has joined the broader selloff rather than maintaining its typical independence from market movements.
Token Unlocks Add Pressure
Beyond macroeconomic factors, PI faces additional pressure from its token unlocking schedule. Data from PiScanUnlock reveals that an average of 4.6 million tokens unlock daily, potentially intensifying selling pressure as investors gain access to coins they’ve awaited.
This consistent supply increase could exacerbate price declines during market downturns, as holders who receive unlocked tokens may choose to sell immediately.
Market Context and Implications
The current decline places PI near historically significant price levels. With the token trading at $0.183, it sits just $0.011 above its October all-time low of $0.172. This proximity to previous support levels could indicate either a potential bottom or signal further downside if selling pressure continues.
The combination of external macroeconomic pressures and internal supply dynamics creates a challenging environment for PI holders. Unlike previous instances where the token demonstrated resilience during market volatility, the current selloff has affected PI alongside other cryptocurrencies.
Looking Forward
The immediate future for PI appears tied to both international trade developments and the ongoing token unlock schedule. With 4.6 million tokens entering circulation daily, sustained buying interest would need to match this supply increase to stabilize prices.
Trade negotiations between the US and EU could continue impacting broader cryptocurrency sentiment, potentially affecting PI’s price trajectory in the coming days and weeks.
Key Takeaways:
- PI broke its stagnation with a 7% daily decline
- US-EU trade tensions triggered the cryptocurrency selloff
- Daily token unlocks of 4.6 million create ongoing selling pressure
- The token trades just above its October all-time low
- Previous market independence has given way to broader correlation
