The crypto market is facing a brutal correction, wiping out all gains since Donald Trump’s election win in November. The overall market capitalization has dropped 8% to $2.7 trillion, with Bitcoin crashing 7% to $78,000—its lowest since November. The selling pressure intensified after Trump announced fresh tariffs on Chinese imports, sparking fears of a global economic slowdown.
According to The Kobeissi Letter, since the trade war fears began on January 20th, the crypto market has lost $800 billion, wiping out gains despite Trump being the most pro-crypto president in history. Bitcoin, once seen as a hedge against uncertainty like gold, now moves in sync with risk assets. Its correlation with the S&P 500 hit 0.88 in 2024, meaning it followed the stock market nearly 88% of the time. Moreover, liquidity concerns are freaking the crypto investors of a biggest crash ever, with crypto weakening as money exits the market.
Ethereum Erases All Post-Election Gains
After Bitcoin, Ethereum has also taken a major hit, erasing all its post-election rally and plunging 9% since November 5. The Kobeissi Letter highlighted this massive drop, questioning whether a new crypto bear market has begun. ETH is now down nearly 50% from its highs after the election, mirroring the broader market’s sharp decline. Prices are now close to $2,000, the lowest since November, showing a big shift in market mood.
- Also Read :
- Crypto Market Crash Today : 28th FEB – XRP News Why is Bitcoin Crashing? , Pi Network Price , Trump Tariff
- ,
Altcoins in Freefall Amid Economic Uncertainty
XRP and Dogecoin led the losses, crashing over 10% following the confirmation of new U.S. tariffs on China. Major altcoins like Cardano (ADA) and Binance Coin (BNB) also fell at least 9%, adding to the growing bearish sentiment. Traders pointed to liquidity draining from memecoin rallies and Bitcoin ETF sell-offs as key drivers behind the downturn. One crypto user said the current market is not for altseason, we can’t recover soon.
Despite strong earnings from Nvidia, the overall market mood remains weak. The S&P 500’s weakness and concerns over a prolonged U.S.-China trade war have spilled into crypto, adding to the bloodbath. Analysts at SignalPlus noted that bullish Bitcoin traders are leaving, with more investors turning to bearish put options as sentiment worsens.
What’s Next for Crypto?
Friday’s losses also mirrored a sharp decline in Chinese stocks, following Trump’s announcement of a new 10% tariff on Chinese imports, intensifying fears of a trade war between
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Bitcoin is down due to rising trade war fears, massive ETF outflows, and weakening liquidity, sparking panic selling among investors.
With Bitcoin, Ethereum, and altcoins falling sharply, analysts fear a new bear market as liquidity dries up and investors turn cautious.
Ethereum has plunged due to Bitcoin’s decline, massive sell-offs, and fading investor confidence, erasing all post-election gains.
