On February 1, the cryptocurrency market experienced a significant drop following the US import tariffs against China, Mexico, and Canada.
New Tariffs and Their Impact
Effective February 1, the US imposed import tariffs of 25% on goods from Canada and Mexico and 10% on Chinese goods. These measures added complexity to ongoing trade wars, impacting financial markets, including cryptocurrencies.
Bitcoin and Altcoins Decline
Amid a market-wide sell-off, Bitcoin dropped over 5% in value, reaching a low of approximately $91,200 before recovering to about $94,000. Other cryptocurrencies were also affected: Ethereum fell 20%, Ripple by 22%, Solana by 8%, and Binance Coin by more than 15%.
Market Sentiment and Expert Opinions
Despite partial recovery, trading volumes surged by 200%, indicating significant selling pressure. Many investors are realizing their assets at lower profits or even losses, often a sign of capitulation. Experts like BitMEX CEO Arthur Hayes warned of a potential financial crisis. "60% of Americans don’t have $1k in emergency funds. So Trump decides to hike energy prices via tariffs? Could this be an attempt to trigger a mini-crisis?" he tweeted.
The new tariff measures have caused significant fluctuations in the cryptocurrency market, increasing pressure on investors and highlighting global economic and political developments.
