Mass liquidations, a crypto crash, and panic everywhere — but a top analyst says this could be crypto’s biggest opportunity yet. Could U.S. President Donald Trump’s tariffs actually fuel Bitcoin’s next big move?
Editor’s note: this article was written prior to the U.S. government reaching a tentative deal with Mexico’s government to at the very least suspend implementation of the tariff for one month. You can read about this development here.
Crypto markets have taken a sharp downturn following the latest wave of economic uncertainty triggered by new U.S. tariffs.
Effective Feb. 1, the U.S. imposed 25% tariffs on imports from Canada and Mexico and 10% tariffs on Chinese goods, escalating trade tensions and adding pressure to global markets.
In the wake of this situation, Bitcoin (BTC) dropped to $91,200 before recovering to $96,000 levels, still down 2.5% in the last 24-hours as of Feb. 3. Meanwhile, Ethereum (ETH) saw a 15% drop, crashing to $2,600.
The overall crypto market followed suit, losing $300 billion in value in just 24 hours, bringing total market cap down to $3.25 trillion, its lowest since mid-November, according to CoinGecko.
The derivatives market faced heavy liquidations, with $2.33 billion in positions wiped out, as per CoinGlass. Long traders suffered the most, losing $1.91 billion, while short positions saw $417 million in liquidations. Ethereum led the losses with $600 million liquidated, followed by Bitcoin at $400 million.
Tariffs can drive inflation, disrupt supply chains, and weaken economic growth—factors that influence market sentiment. The key question now is how deep this correction could go and whether the market is bracing for prolonged volatility. Let’s find out.
Author: Ankish Jain
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
