Crypto Market Plummets Amid New Tariff Policies
The cryptocurrency market is reeling from the effects of new tariff policies announced by the White House under President Donald Trump. On February 27, Bitcoin experienced a significant decline, dropping over four percent to trade at $84,940 (approximately Rs. 74 lakh), marking its lowest point since November of the previous year. Market analysts attribute this downturn to the president’s decision to impose a 25 percent tariff on imports from the European Union, leading to increased selling pressure across the crypto sector.
Bitcoin and Ether Face Major Losses
In the wake of the tariff announcement, Bitcoin’s price fell sharply, with Indian exchanges reporting it trading at $89,345 (around Rs. 78 lakh), reflecting a loss of about six percent in just one day. Edul Patel, CEO and Co-founder of Mudrex, noted that while the market is under pressure, historical trends indicate that such phases often lead to a reset and potential rally. He suggested that Bitcoin could test the $80,000 mark (approximately Rs. 69.8 lakh) before making a significant upward move.
Ether also faced a steep decline, dropping 6.71 percent on global exchanges to a price of $2,322 (roughly Rs. 2.03 lakh). On Indian platforms, Ether traded at $2,430 (about Rs. 2.12 lakh), with losses exceeding eight percent. The ZebPay trade desk highlighted that Ether has strong support levels at $2,350 (approximately Rs. 2.05 lakh) and $2,150 (around Rs. 1.87 lakh), while resistance is expected in the $2,800 to $3,000 range (approximately Rs. 2.44 lakh to Rs. 2.61 lakh).
Mixed Performance Among Altcoins
While Bitcoin and Ether struggled, altcoins exhibited a mixed performance on Thursday. Major cryptocurrencies such as Ripple, Binance Coin, Solana, Dogecoin, Cardano, Tron, and Chainlink all recorded losses. Additionally, Stellar, Uniswap, Monero, Cronos, and EOS Coin also saw price dips. The overall cryptocurrency market capitalization fell by 4.44 percent in the last 24 hours, bringing the total valuation down to $2.81 trillion (approximately Rs. 2,44,96,044 crore), with Bitcoin’s dominance currently at 59.75 percent.
Avinash Shekhar, Co-Founder and CEO of Pi42, expressed concerns over institutional selling and macroeconomic instability, which have shaken investor confidence. He noted that the coming weeks would be crucial in determining whether the cryptocurrency market is experiencing a temporary correction or the onset of a deeper downturn.
Stablecoins Maintain Stability Amid Market Turmoil
Despite the overall market decline, stablecoins like Tether and USD Coin have managed to maintain their 1:1 peg with the US dollar. Meanwhile, some cryptocurrencies, including Avalanche, Shiba Inu, Leo, Polkadot, Cosmos, and Elrond, showed minor gains amidst the broader market downturn. The CoinDCX Research Team pointed out that while Ethereum, Solana, and Cardano tested their crucial support levels, Litecoin, Chainlink, and meme coins like Pepe and Shiba Inu remained bullish during this challenging period. The notable dent in Bitcoin’s dominance suggests that traders may be shifting their focus toward altcoins.
Disclaimer: Cryptocurrency is an unregulated digital currency and not considered legal tender, subject to market risks. The information provided in this article does not constitute financial or trading advice. Observervoice is not responsible for any losses arising from investments based on the information contained herein.
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