Bitcoin’s Surge Stalls Amid Tariff Tensions
The Bitcoin market is experiencing a significant downturn, losing momentum after a rally that began with Donald Trump’s election as U.S. President in November 2024. On February 28, Bitcoin’s value plummeted nearly six percent on international exchanges, dropping to $80,020 (approximately ₹69.9 lakh) for the first time since its rise. In India, Bitcoin also saw a five percent decline, trading at $85,135 (around ₹74.4 lakh).
Market Reaction to Tariff Announcements
The recent slowdown in Bitcoin’s price has been attributed to escalating trade tensions following President Trump’s announcement of an additional 10 percent tariff on Chinese imports. According to the CoinDCX research team, this development has negatively impacted the cryptocurrency markets. Furthermore, the U.S. Securities and Exchange Commission (SEC) clarified that many memecoins do not meet the criteria to be classified as securities, primarily because they rely on hype rather than utility. This regulatory uncertainty has added to the market’s volatility.
As a result of these factors, the overall sentiment in the cryptocurrency market has shifted, leading to increased caution among investors. The SEC’s stance on memecoins has raised questions about the future of various cryptocurrencies, contributing to the current market instability.
Ethereum and Altcoins Suffer Significant Losses
Ethereum, the second-largest cryptocurrency by market capitalization, has not escaped the downturn. On the same day, Ether’s price fell over nine percent, trading at $2,114 (approximately ₹1.84 lakh) on global exchanges. Indian exchanges reported a similar trend, with Ether priced at $2,130 (around ₹1.86 lakh) after an 8.7 percent drop.
Market analysts, including Avinash Shekhar, Co-Founder and CEO of Pi42, noted that Ethereum has reached a yearlong low. The combination of Trump’s tariff policies, regulatory concerns, and a recent $1.5 billion hack of the Bybit exchange has shaken investor confidence. As traders monitor key technical levels, the prevailing risk-off sentiment suggests that caution is warranted as the market navigates these turbulent waters.
Overall Market Valuation Declines
The broader cryptocurrency market has also felt the impact of these developments. According to CoinMarketCap, the total market valuation fell by 5.40 percent, bringing it down to $2.66 trillion (approximately ₹2,32,48,293 crore) within 24 hours. Most altcoins, including Ripple, Solana, and Cardano, reported losses, alongside other notable cryptocurrencies like Avalanche, Chainlink, Shiba Inu, Dogecoin, Stellar, and Polkadot.
Despite the downturn, a few cryptocurrencies, such as Leo, Iota, and Circuits of Value, managed to maintain minor gains. Analysts from CoinSwitch have indicated that while the SEC has softened its stance on certain cryptocurrencies, the market remains under pressure. They suggest that Bitcoin’s next support level could be around $73,000 (approximately ₹63.8 lakh), and if macroeconomic conditions do not improve, this decline may occur sooner than anticipated.
Disclaimer: Cryptocurrency is an unregulated digital currency, not recognized as legal tender, and is subject to market risks. The information provided in this article does not constitute financial or trading advice. NDTV is not responsible for any losses arising from investments based on this information.
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