Crypto Market Sees Notable Decline Amid US-China Trade Wars

The crypto market experienced a significant downturn on February 1, following President Donald Trump’s imposition of import taxes on China, Mexico, and Canada. Bitcoin’s price fell by 5%, affecting the entire market, including altcoins.

US Tariffs and Global Market Impact

Effective February 1, the US will impose tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods, further complicating the existing trade wars. This move has contributed to a decline in market sentiment and asset values.

Over the past 24 hours, Bitcoin (BTC) has experienced a notable decline, falling by over 5% to a low of approximately $91,200 before rebounding to around $94,000. Despite this recovery, BTC remains roughly 13% below its all-time high of $109,000.

Trading volume has surged by more than 200%, indicating considerable selling pressure or market panic. The overall global crypto market cap has dropped nearly 12% during the same period, settling at about $3.15 trillion.

Altcoins Affected by Bitcoin’s Price Crash

The decline in Bitcoin’s price has had a cascading effect on altcoins. In the last 24 hours, Ethereum (ETH) has fallen by nearly 20%, Ripple (XRP) by 22%, Solana (SOL) by 8%, and Binance Coin (BNB) by over 15%.

Market Volatility and Long-Term Holder Behavior

Rising trading volume alongside price dips often signals strong selling pressure or market panic. This pattern suggests that long-term investors are now selling their coins at lower profits than their purchase price—or even at a loss year-to-date.

This behavior often indicates capitulation among long-term holders, a phenomenon common during bearish market trends and corrections. Experts, including BitMEX CEO Arthur Hayes, have warned that a “financial crisis” may be on the horizon.

60% of American plebes don’t have $1k of emergency funds. The Fed is “worried” about inflation. So Trump decides to hike energy prices via tariffs? He ain’t a fool, maybe he is trying to trigger a mini financial crisis? It’s def in the maybe column.

Tips for Navigating Market Volatility:

  • Stay informed about global economic news and its impact on the crypto market.
  • Diversify your investment portfolio to minimize risk.
  • Set realistic expectations and avoid making impulsive decisions based on short-term market fluctuations.

For more news and updates on the crypto market, visit Global Crypto News.

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