Altcoins Crash as Trump Tariffs Shake Markets:
Ether and Altcoins Tumble Amid Tariff Shock:
Ethereum and top alternative cryptocurrencies, including Cardano, plummeted by double digits within an hour as traders reacted to President Donald Trump’s new import levies on China, Canada, and Mexico.
Market Cap Sheds $3.17 Trillion in Altcoin Rout:
Ethereum nosedived 16% in an hour, hitting $2,368 on February 3 before rebounding to $2,521—still 38% below its 2024 peak of $4,078.
Other major tokens, including Avalanche, XRP, Chainlink, and Dogecoin, saw losses exceeding 20%, dragging the overall crypto market capitalization down by 11.4% to $3.17 trillion, according to CoinGecko.
Automated Sell-Off and Investor Caution:
Markus Thielen, founder of 10x Research, attributed the decline to automatic stop-loss activations and reduced retail investor participation as trading volumes tapered off in recent weeks.
Although Trump’s tariffs were widely anticipated, traders had been more focused on DeepSeek developments, causing a delayed market response.
Thielen cautioned that rather than a single-day panic, the market could experience prolonged volatility depending on how U.S. equities perform.
Stock Market and Sentiment Reflect Jitters:
Nasdaq 100 futures slipped 2.7%, while the S&P 500 and Dow Jones lost 2% and 1.5%, respectively.
The Crypto Fear & Greed Index dropped 16 points to 44—its lowest level since October 11.
Bitcoin Holds Ground as Traders Shift Focus:
Bitcoin dipped 6.8% to $94,743 but remained more resilient than altcoins. Consequently, Bitcoin dominance climbed from 61.1% to 64%, signaling a flight to Bitcoin as investors sought a more stable option.