Bitcoin falls sharply as US trade tensions escalate
Ethereum and other major altcoins like Ripple, Solana, and Binance Coin also suffered sharp declines, with losses reaching up to 22%.
The cryptocurrency market experienced a significant downturn on 1 February, following the announcement of new tariffs imposed by the US. President Donald Trump’s decision to apply 25% tariffs on goods from Canada and Mexico and 10% on Chinese imports led to a market-wide sell-off. Bitcoin’s price dropped by over 5%, reaching a low of around $91,200, before rebounding slightly to about $94,000. Despite the recovery, Bitcoin remains approximately 13% below its all-time high of $109,000.
This price drop has had a ripple effect on the wider crypto market. In the past 24 hours, Ethereum saw a sharp decline of nearly 20%, while other major altcoins such as Ripple, Solana, and Binance Coin also took significant hits, with losses reaching as high as 22%. Trading volume surged by over 200%, indicating heightened selling pressure, which often signals market panic.
Bitcoin’s recent crash follows a period of positive price movement after President Trump’s inauguration, but the new tariff policies have shaken investor confidence. With the overall global crypto market cap dropping by almost 12%, concerns are mounting that long-term investors are capitulating, selling at a loss or lower profits. Market experts, including BitMEX CEO Arthur Hayes, have warned that the risk of a financial crisis could be looming, adding to the uncertainty in the markets.