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February 4, 2025

Market Sell-Off: Bitcoin Tumbles as Trump’s Tariffs Trigger Uncertainty

Bitcoin and other leading cryptocurrencies experienced sharp declines on Monday following the surge of U.S. trade tensions, leading to a broad market sell-off.

Market Reaction Across Cryptocurrencies

๐Ÿ”ป Bitcoin diminished by 2.5%, landing at $96,749 with an intraday low hitting $91,690, its nadir in three weeks.
๐Ÿ”ป Ethereum fell 18% to $2,567.26, marking a significant drop to levels not seen since early November.

Reasons Behind Crypto Withdrawals

  • Trump’s tariffs (25% for Mexico and Canada, 10% for China) raising inflation concerns.
  • Risk-off sentiment leading investors to divest from precarious assets, inclusive of cryptocurrencies.
  • Macroeconomic uncertainty influencing liquidity for digital assets.

What Analysts Are Saying

Ran Yi from Orderly Network remarks, โ€œCrypto markets have weathered far greater disruptions and will continue to adapt as global financial conditions transform.โ€

Keeping Track of Crypto Trends

๐Ÿ’ก Crypto Currency Free API โ€“ Get live updates on Bitcoin and Ethereum price shifts.
๐Ÿ’ก Commodities API โ€“ Compare crypto trends with traditional inflation-sensitive assets like gold and oil.

Given the increasing uncertainties, cryptocurrency investors should remain vigilant and carefully monitor macroeconomic signals in the coming weeks.

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