On Sunday night, major cryptocurrencies saw a decline, paralleling a drop in stock prices as the new president, Donald Trump, announced a 15% tariff on goods imported from the U.S. around the world.
Cryptocurrency market falls into ‘extreme fear’
Bitcoin’s trading volume decreased in the last 24 hours, fluctuating between the high $65,000s and low $68,000s.
Ethereum also experienced low volatility, staying within a narrow range just below $2,000. XRP and dogecoin both saw significant drops over the same period.
In the past 24 hours, more than $300 million has been wiped out from the market. A bullish long position of $290 million was liquidated, according to Coinglass.
Bitcoin’s open interest dropped by 1.85%, while Ethereum’s fell by 4.33%. Interestingly, at this moment, many retail and whale investors on Binance were still holding long positions on BTC.
On platforms like Bybit and OKX, Bitcoin whales have turned bearish, yet those on Binance remain optimistic about BTC.
The Cryptocurrency Fear and Greed Index has plummeted, hitting a record low of 5, signaling an atmosphere of “Extreme Fear” within the market.
Top Gainers (24 hours)
The total market capitalization for cryptocurrencies was reported at $2.31 trillion, reflecting a slight rise of 0.57% over the last 24 hours.
Stock futures fall, gold edges up
Stock futures experienced a slight dip on Sunday night, with Dow Jones Industrial Average Futures down by 208 points, or 0.42%, as of 7:47 p.m. EDT. Futures linked to the S&P 500 fell by 0.49%, and Nasdaq 100 futures dropped by 0.67%.
Trump’s announcement of new 15% global tariffs came after the Supreme Court rejected his earlier attempt to raise import taxes using emergency powers, further emphasizing Congress’s role in tax and trade policy.
In contrast, precious metals gained ground, with spot gold increasing by 0.85% to $5,148 an ounce and spot silver rising by 2.34% to $86.60.
Will there be another 30% BTC fall?
Ali Martinez, a notable crypto analyst, has pointed out certain technical patterns that have historically indicated the nearing end of the Bitcoin cycle.
“We’re approaching a potential death cross between the 50 and 200 SMA on the three-day chart, expected to occur in late February,” Martinez explained. “If historical patterns hold, a further decline of 30% from current levels could bring Bitcoin down to around $40,000.”
A death cross is significant because it typically signals a possible severe drop or sustained bearish trend when the short-term moving average crosses below the long-term moving average.
Another well-known cryptocurrency commentator, Don Alto, remarked that “aggressive bulls” should ideally look for Bitcoin to close above $71,000.
“I’m not rushing, so I’m holding out for a deeper discount, like around $42,000, or a market structure shift above $86,000,” he added.
