Why is the Crypto Market Crashing Today? 📉
As of February 3, 2025, Bitcoin's price has declined by approximately 6.23%, currently trading at $93889.
As of February 3, 2025, Bitcoin's price has declined by approximately 6.23%, currently trading at $94,619.
Several factors have contributed to this downturn:
Global Trade Tensions: The recent imposition of tariffs by the U.S. on imports from Mexico, Canada, and China has heightened fears of a global trade war. Investors are moving away from riskier assets, including cryptocurrencies, leading to a sell-off in the market.
Leveraged Liquidations: A significant number of leveraged positions in the Bitcoin futures market have been liquidated. This cascade of liquidations has intensified the downward pressure on Bitcoin's price.
These combined factors have created a challenging environment for Bitcoin and the broader cryptocurrency market today.