The cryptocurrency market experienced a brutal sell-off on February 3, 2025, at around 8:00 PM, as Bitcoin (BTC) plunged over 7% to $91,231, while Ethereum (ETH) dropped more than 20% to $2,125. This rapid decline wiped out over $430 billion from the crypto market, sparking panic among traders and investors.
What Triggered the Crash?
The primary reason behind this sharp decline was the U.S. tariff announcement by President Donald Trump, which introduced:
A 25% tariff on Canadian and Mexican imports
A 10% tariff on Chinese imports
These aggressive trade policies raised fears of a global trade war, leading to a market-wide shift away from volatile assets like cryptocurrencies. While Bitcoin is often considered a hedge against inflation and economic instability, today’s events led to a broad risk-off sentiment, causing heavy selling pressure across the crypto sector.
Ethereum Leads the Altcoin Sell-Off
Bitcoin wasn’t the only casualty. Ethereum suffered one of its worst daily losses, tumbling to $2,125, marking a steep 20% decline. Other altcoins also faced severe downturns:
🔹Ripple (XRP) and Cardano (ADA) – Both saw double-digit losses
🔹Crypto-related stocks (Coinbase, MicroStrategy) – Declined before showing signs of recovery
This sell-off extended beyond the crypto space, with traditional markets also reacting negatively to the trade war fears.
What’s Next for Bitcoin & Ethereum?
With BTC struggling at $91,231 and ETH at $2,125, the market is at a critical juncture. What happens next will depend on:
🔹Geopolitical Events – Any further escalation in trade tensions could keep crypto under pressure.
🔹Institutional Buying – Large players stepping in could stabilize BTC and ETH.
🔹Key Support Levels – Bitcoin must hold $90,000, while Ethereum needs support above $2,000 to avoid further downside.
Short-term volatility remains high, but long-term investors might see this correction as a buying opportunity if key levels hold.
Final Thoughts-
Bitcoin’s drop to $91,231 and Ethereum’s crash to $2,125 highlight how macroeconomic events can significantly impact crypto markets. As we navigate this uncertainty, traders should manage risk wisely, stay informed, and watch for critical price movements before making big decisions.
Do you think Bitcoin and Ethereum will recover soon, or is a deeper correction coming? Share your thoughts in the comments!
