EddieJayonCrypto
28 Feb 25
The crypto market capitalization has decreased by 18% over the past week, reaching its lowest level since October at $2.75 trillion. This drop is attributed to trade tensions, with President Trump's trade tariffs prompting a massive selloff of $600 billion in the space. Bitcoin fell below $80,000 an...
The crypto market capitalization has decreased by 18% over the past week, reaching its lowest level since October at $2.75 trillion. This drop is attributed to trade tensions, with President Trump's trade tariffs prompting a massive selloff of $600 billion in the space. Bitcoin fell below $80,000 and its weekly losses were almost 19%, while Ethereum also experienced a significant decline. The altcoin market is returning to bear market levels, wiping out gains from the past few months. Overall, the crypto market has been uptrending since the end of the bear market in October 2023, despite falling below peak levels from the previous cycle. Support lines have been broken, and all gains since the US presidential election in November have been wiped out as a whopping $600 billion has exited the space over the past week. The massive selloff has been a knee-jerk reaction to US President Trump’s trade tariffs. This week, he warned that 25% tariffs on Mexican and Canadian goods would take effect on March 4 and said there would be an additional 10% tax on China as well as threatening duties on the European Union. Since trade war worries began on Jan. 20, crypto markets have erased $800 billion. Trade tensions often create market volatility across all asset classes, including cryptocurrencies and stocks, which have also been tumbling. Crypto also takes a hit when liquidity dries up and a lot of it has gone back into the US dollar. On Feb. 28, CoinGlass reported that more than 200,000 traders have been liquidated over the past 24 hours to the tune of $800 million. Around 86% of them were long positions and the largest single liquidation order happened on HTX with a $38 million BTC/USDT trade. Bitcoin plunged below $80,000 during Asian trading on Friday as the asset lost another 6% on the day. Its weekly losses were almost 19%, and it has corrected 26% from its January all-time high. Ethereum has been obliterated in a fall to just over $2,100, its lowest level for more than a year. ETH has lost a whopping 9% on the day and 23% since the same time last week. Most of the altcoins are wiping out all of their gains so far over the past few months and returning to bear market levels. Nevertheless, zooming out shows that crypto markets, in general, have still been uptrending since the end of the bear market in October 2023 despite them falling below peak levels from the previous cycle.