Bitcoin Dips Below $80,000 Amidst Economic Concerns
Bitcoin’s recent decline fell to $80,020 amid regulatory concerns and tariff escalations. Ether also saw a significant drop, with widespread losses across major altcoins. The overall crypto market has decreased by 5.40 percent, indicating a risk-averse environment for investors.
The Bitcoin surge that began in November 2024 after Donald Trump’s election as US President has lost significant momentum recently. As of February 28, Bitcoin prices experienced a nearly six percent drop, falling to $80,020 for the first time since November. In India, it traded at $85,135, reflecting a five percent decrease within 24 hours.
The CoinDCX research team indicated that the recent downturn is largely a result of escalating tariff tensions between the United States and China, following Trump’s announcement of a 10 percent tariff. This geopolitical challenge has had a negative impact on crypto markets. Additionally, recent statements from the Securities and Exchange Commission (SEC) revealing that most memecoins do not meet the criteria of securities have contributed to market instability, as these assets often depend more on hype than utility.
Ether also faced a downward trend, registering a price decline of over nine percent on February 28, with trading values at $2,114 globally and $2,130 in India. Avinash Shekhar, Co-Founder and CEO of Pi42, highlighted that the market’s negative sentiment has been further amplified by regulatory concerns and the recent hack of Bybit valued at $1.5 billion. Investors are urged to monitor key market indicators and exercise caution in the current climate.
On the same day, various altcoins including Ripple, Solana, Cardano, Shiba Inu, and Dogecoin traded lower, contributing to an overall market valuation drop of 5.40 percent, totaling $2.66 trillion. While a few cryptocurrencies managed to see slight increases, the general trend remains negative.
Despite the SEC softening its stance on cryptocurrencies, as shown in their recent comments regarding memecoins, market conditions remain challenging. According to CoinSwitch, should current global economic factors persist, Bitcoin could test support levels around $73,000 soon. Investors are advised to remain cautious given the current circumstances surrounding cryptocurrency trading and investments.
In summary, Bitcoin and Ether have suffered notable declines due to macroeconomic uncertainties, particularly linked to tariff wars and regulatory news. Major altcoins have also seen decreased valuations, leading to a significant drop in overall market capitalization. Investors should exercise caution as external economic conditions may further influence the crypto market’s stability.
Original Source: www.gadgets360.com
Post Comment