Learn additionally: Oil prices climb for third day as fears grow of US strike on Iran
In accordance with journalists, the crypto market is at present experiencing its worst interval since U.S. President Donald Trump returned to the White Home.
On Tuesday, February 3, the world’s main cryptocurrency fell 7%, dropping to $72,877, the bottom stage since November 6, 2024. Consequently, a lot of the optimism that prevailed after the U.S. elections has successfully evaporated.
Wanting again to October 6, 2025, when Bitcoin surged to $126,000, the present decline seems catastrophic. Since its all-time excessive in October final 12 months, the asset has misplaced about 40% of its worth.
In accordance with Bohan Zhiang, senior derivatives dealer at FalconX, the sharp drop was attributable to mass liquidation of positions by merchants who have been betting on a fast market restoration and anticipating bitcoin to rise above $80,000.
“Many positions have been liquidated, which additional pressured costs,” he famous.
Causes for decline
The scenario was additionally affected by geopolitical and market dangers. As tensions between the U.S. and Iran rise, buyers have been flocking to actual gold and silver as an alternative of cryptocurrencies.
As well as, buyers have been spooked by statements from Donald Trump relating to new tariffs on imports. When world financial instability looms, folks are likely to exit dangerous property first, and cryptocurrency is often the primary to be bought.
Additional strain got here from the retreat of the S&P 500 from file highs and rising oil costs attributable to world tensions.
Traders and merchants are carefully watching Trump’s subsequent strikes and world financial indicators, as even small adjustments in US coverage can set off sharp fluctuations within the crypto market. To date, the general decline for the present 12 months already stands at almost 14%.
The Trump household earned $1.4 billion from cryptocurrency final 12 months.
On the similar time, the household’s complete wealth stays roughly steady: features from crypto partially offset losses in different enterprise areas, together with a decline out there worth of Trump Media & Know-how Group, the father or mother firm of the social community Reality Social.
Predicting Bitcoin’s future actions is almost unimaginable, as cryptocurrencies lack an actual financial basis, in contrast to nationwide currencies.
RBC-Ukraine additionally reported on authorities plans to legalize digital property.
