Bitcoin Declines to $84,900 Amid Tariff Imposition; Mixed Results for Altcoins
Bitcoin has fallen to $84,940 following new tariffs from the U.S., marking its lowest price since November. Ether also saw declines, trading at $2,322 while various altcoins exhibited mixed performance. The overall market capitalization has dropped to $2.81 trillion, with concerns over institutional selling and macroeconomic instability affecting investor sentiment.
The cryptocurrency market is reacting to recent tariff policies implemented by the U.S. government under President Donald Trump, leading to a noteworthy decline in Bitcoin’s value. On February 27, Bitcoin’s price fell over four percent, trading at approximately $84,940 globally, its lowest since November. In India, Bitcoin exchanged hands at around $89,345, reflecting a daily loss of about six percent.
Market analysts attribute this downturn to the imposition of a 25 percent tariff on imports from the European Union, resulting in heightened selling pressure across the crypto sector. Edul Patel, CEO of Mudrex, stated, “Trump’s plan to impose tariffs on the European Union added to the selling pressure, triggering a market-wide correction. Despite ongoing outflows, historical trends suggest that such re-accumulation phases lead to a market reset and subsequent rally.”
Ether also experienced a decline, dropping 6.71 percent to around $2,322 on global exchanges. On Indian platforms, Ether traded at approximately $2,430, representing an over eight percent fall. The ZebPay trade desk noted that Ether has solid support at $2,350 and $2,150, while resistance is expected between $2,800 and $3,000.
As Bitcoin and Ether continue to struggle, altcoin performance has been varied, with several prominent cryptocurrencies like Ripple, Binance Coin, and Solana recording losses on Thursday. Conversely, Stellar, Uniswap, and other lesser-known coins also saw dips. The overall cryptocurrency market capitalization has decreased by 4.44 percent, now totaling approximately $2.81 trillion, with Bitcoin’s market dominance currently at 59.75 percent.
The prevailing environment of institutional selling and macroeconomic uncertainty raises concerns among investors, as pointed out by Avinash Shekhar, Co-Founder and CEO of Pi42, who remarked, “The coming weeks will test whether Bitcoin and crypto can withstand these pressures or if further declines are on the horizon.” Meanwhile, Tether and USD Coin have maintained their stability against the U.S. dollar.
Minor gains were observed among cryptocurrencies such as Avalanche and Shiba Inu, even as others struggled. The CoinDCX Research Team highlighted that cryptocurrencies like Ethereum and Solana are testing their crucial support levels, while some altcoins appear to be attracting trader interest amid the prevailing market conditions.
In summary, the cryptocurrency market is undergoing significant volatility following recent tariff announcements by the U.S. government. Bitcoin and Ether have both experienced substantial declines, alongside mixed performances in the altcoin sector. The current market landscape is marked by institutional selling and macroeconomic challenges that may test the resilience of digital currencies in the near future. Investors should remain cautious and informed as these dynamics unfold.
Original Source: www.gadgets360.com
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