Crypto Market Faces Slowdown Amid Trade Tariffs
The cryptocurrency market has experienced a noticeable slowdown following the recent signing of new international trade tariff laws by U.S. President Donald Trump. This development has led to fluctuations in the prices of major cryptocurrencies, including Bitcoin and Ether. As investors react to the implications of these tariffs, the market is navigating a complex landscape of economic pressures and investor sentiment.
Bitcoin’s Minor Decline Amid Trade Concerns
On February 10, Bitcoin saw a slight decline of less than one percent on global exchanges, bringing its value to approximately $96,890 (around Rs. 85 lakh), according to CoinMarketCap. In India, Bitcoin traded at $97,563 (roughly Rs. 85.6 lakh), reflecting a drop of about two percent over the past 24 hours. Analysts suggest that this downturn is linked to President Trump’s announcement of imposing a 25 percent tariff on steel and aluminum imports. This move has raised concerns about escalating trade tensions, particularly with Canada and Mexico.
Edul Patel, CEO of Mudrex, noted that Bitcoin is currently trading near its support level. He warned that if selling pressure continues, Bitcoin could test its previous low of $91,000 (approximately Rs. 80 lakh). The market’s reaction to these tariffs highlights the interconnectedness of global economic policies and cryptocurrency valuations. Investors are closely monitoring these developments, as they could significantly influence market trends in the coming days.
Ether’s Performance and Market Sentiment
Ether, the second-largest cryptocurrency by market capitalization, also experienced a decline. Over the last 24 hours, its price dropped by 1.60 percent on global exchanges, settling at $2,626 (around Rs. 2.30 lakh). On Indian platforms, Ether’s trading value fell by approximately 2.50 percent, reaching $2,603 (around Rs. 2.28 lakh). This downward trend mirrors Bitcoin’s performance, as both cryptocurrencies are influenced by broader market dynamics.
Despite the recent price drops, some analysts remain optimistic about Ether’s future. Avinash Shekhar, Co-Founder and CEO of Pi42, pointed out that Ethereum appears steady, with traders focusing on developments from the Ethereum Foundation. He noted that even amidst macroeconomic pressures, accumulation trends suggest a degree of optimism among long-term investors. The crypto market often oscillates between fear and confidence, and while short-term holders may feel anxious, those with a longer investment horizon are more likely to remain patient. Historical trends indicate that price dips can lead to subsequent rallies, which could revive momentum in the market.
Altcoins Struggle as Market Cap Declines
The ongoing market slump has adversely affected many altcoins, with several experiencing significant losses. According to the crypto price tracker by Gadgets 360, popular altcoins such as Ripple, Tether, Dogecoin, USD Coin, Cardano, and Tron have all registered price dips. Other cryptocurrencies like Avalanche, Stellar, Shiba Inu, Polkadot, and Uniswap have also seen declines in their trading values.
The overall cryptocurrency market capitalization has slipped by 0.51 percent in the last 24 hours, now standing at approximately $3.17 trillion (around Rs. 2,77,41,824 crore). However, amidst this downturn, a few altcoins have managed to hold onto their gains. Litecoin, Monero, Iota, and Underdog have shown resilience, while Braintrust, Ardor, and Mobox have also reflected small profits on Monday.
Despite the challenges, some altcoins are showing signs of a potential reversal. The CoinDCX research team highlighted that tokens like Cardano, Chainlink, SUI, and Hedera are experiencing bullish community sentiments, which could indicate a shift in market dynamics.
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