Cryptocurrency Market Sees Steep Declines Amid U.S. Tariff Fears
Cryptocurrency prices plummeted on February 3, primarily due to fears surrounding U.S. tariffs introduced by President Donald Trump. Bitcoin fell below $95,500, dragging the entire market down by $2.26 billion. Cardano and Solana experienced substantial losses, while dog-themed memecoins like Dogecoin and Shiba Inu also saw significant declines in value, raising concerns about future performance.
On February 3, Bitcoin’s price fell below $95,500, marking a nearly 5% decline within a week. This downturn resulted in a substantial $2.26 billion loss in the crypto market, primarily driven by concerns surrounding tariffs imposed by U.S. President Donald Trump on key trade partners, including China, Canada, and Mexico. Nick Forster, Founder of Derive.xyz, indicated that these tariffs could lead to inflation, affecting investor confidence in cryptocurrencies.
In the same context, the prices of Cardano (ADA) and Solana (SOL) continued to decline as they traded in the red on Monday, reflecting a decline of over 15% the prior week. The selling pressure in the crypto market intensified with the announcement of the tariffs, resulting in over $120 million in liquidations from ADA and SOL within a single day. Both altcoins are exhibiting a bearish trend according to technical analyses and on-chain metrics.
Furthermore, the drops extended to popular dog-themed memecoins Dogecoin (DOGE) and Shiba Inu (SHIB), which also faced price declines exceeding 10% in recent days. The downturn has collectively wiped out over $90 million from these assets within 24 hours, leading to noteworthy liquidations. The forecast for both memecoins remains negative, with their momentum indicators suggesting a continuation of the downtrend.
The article discusses the recent significant decline in cryptocurrency markets, with a particular focus on Bitcoin, Cardano, Solana, and popular memecoins. The price drops have been attributed to fears surrounding tariffs introduced by U.S. President Donald Trump on international trade partners. These impacts have led to substantial liquidations in the market, highlighting the volatility and risks within cryptocurrency investments.
In summary, the cryptocurrency market has experienced notable downturns due to the introduction of tariffs by the U.S. government. Bitcoin, Cardano, and Solana have seen significant price declines, resulting in considerable liquidations. Meanwhile, dog-themed cryptocurrencies, such as Dogecoin and Shiba Inu, have also faced negative momentum, indicating broader market uncertainty driven by regulatory and economic factors.
Original Source: www.fxstreet.com
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