Cryptocurrency Market Encounters Slowdown Amid U.S. Trade Tariffs
Bitcoin trades near $96,900 as the market experiences a slowdown due to new trade tariffs from the U.S. President. Ether and numerous altcoins have also faced price declines, with only a few showing positive momentum. Overall market capitalization has dropped by 0.51 percent, reflecting ongoing volatility in the cryptocurrency sector.
The recent slowdown in the cryptocurrency market can be attributed to President Donald Trump signing new international trade tariff laws. On February 10, Bitcoin experienced a slight decline of less than one percent, with its value recorded at $96,890 (approximately Rs. 85 lakh) globally, and $97,563 (approximately Rs. 85.6 lakh) in India after a two percent drop in the past 24 hours. According to Edul Patel, CEO of Mudrex, Bitcoin is trading near its support level and may test its previous low of $91,000 if selling pressure persists due to escalating tariffs on steel and aluminum.
Ether has also followed a similar downward trajectory, dropping by 1.60 percent in the last 24 hours, bringing its value down to $2,626 (around Rs. 2.30 lakh) globally. On Indian exchanges, Ether’s value fell about 2.50 percent to $2,603 (approximately Rs. 2.28 lakh). Despite market fluctuations, Avinash Shekhar, Co-Founder and CEO of Pi42, indicated that Ethereum remains steady, with signs of optimism amid macroeconomic pressures, as traders appear focused on developments from the Ethereum Foundation.
The current market slump has adversely affected many altcoins, including Ripple, Tether, Dogecoin, USD Coin, Cardano, and Tron. Other notable declines were observed in Avalanche, Stellar, Shiba Inu, Polkadot, and Uniswap. The overall cryptocurrency market capitalization has decreased by 0.51 percent, currently valued at $3.17 trillion (approximately Rs. 2,77,41,824 crore). Despite this, a few altcoins such as Litecoin, Monero, Iota, and Underdog have managed to record small gains.
Signs of potential recovery have emerged for certain altcoins like Cardano, Chainlink, SUI, and Hedera, as the sentiment within their communities remains bullish. The CoinDCX research team noted this optimism despite the prevailing market conditions. As cryptocurrency remains an unregulated digital asset and not a legal tender, investors are reminded to consider market risks when investing in this sector.
The cryptocurrency market is often influenced by macroeconomic conditions, regulatory changes, and investor sentiment. Recent trade tariff laws instituted by the U.S. government have created fluctuations in the market, particularly impacting Bitcoin and other cryptocurrencies. Market capitalization is an essential metric for investors as it reflects the overall health and size of the cryptocurrency sector. The cryptocurrency market remains highly volatile and speculative, navigating between fear and confidence among traders.
In conclusion, the cryptocurrency market is currently facing headwinds due to new trade tariffs, leading to significant price declines for Bitcoin and many altcoins. While some cryptocurrencies like Litecoin and Monero are showing small gains, bearish sentiment persists across the sector. The market’s ability to recover may depend on community sentiment and strategic developments from cryptocurrency projects. Investors are encouraged to exercise caution as the market continues to display high volatility.
Original Source: www.gadgets360.com
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