Global Trade Tensions Shake the Market
The cryptocurrency market faced wild swings on February 3, 2025, as global economic policies and fears of a trade war spooked investors. The day started with unease after the U.S. President Donald Trump announced new import taxes (tariffs) on goods from Canada, Mexico, and China. These tariffs raised concerns about strained international trade relationships, causing panic across financial markets—including cryptocurrencies.
Source | Truth Social @realDonaldTrump
Bitcoin and Ethereum Take a Dive
Bitcoin (BTC), the largest cryptocurrency, plunged to a low of 91k, reflecting worries that the tariffs could spark a global trade war. Ethereum (ETH) also suffered, losing nearly 25% of its value in just three days—its worst drop since late 2022. The overall crypto market lost 11.15% of its total value, sinking to 3 trillion. Major coins like XRP followed the downward trend, with prices tumbling across the board.
Source | Tradingview
Trading Frenzy and Massive Liquidations
Amid the panic, trading activity exploded. A staggering 93.7 billion worth of cryptocurrencies changed hands in 24 hours. This frenzy led to at least 2.18 billion in liquidations, affecting over 715,000 traders. The chaos highlighted how quickly crypto markets can spiral when fear takes over.
Mixed Reactions from Experts
Analysts and traders were split on the day’s events. Some called the crash a normal “correction” in a famously unstable market, predicting prices would stabilize soon. Others warned investors to prepare for more turbulence, urging better strategies to handle risks tied to global politics.
Late-Night Recovery: Tariffs Paused
By evening, the market rebounded sharply. News broke that the U.S. and Mexico, Canada had agreed to pause new tariffs for 30 days. Bitcoin soared back to 100k, and most altcoins—like Ethereum, Solana, and XRP, recovered much of their losses. The turnaround showed how fast crypto prices can bounce back when tensions ease.
Source | Truth Social @realDonaldTrump
What This Means for Crypto’s Future
Yesterday proved that cryptocurrencies are deeply tied to global economics. While they’re often seen as a way to escape traditional financial systems, the day’s events revealed their sensitivity to real-world politics. The recovery also demonstrated the market’s resilience, offering hope that stability could return if trade conflicts cool.
For now, investors are watching closely to see if the rebound holds—or if new shocks lie ahead. This is not financial advice (NFA), and it’s crucial to always do your own research (DYOR) before making any investment decisions. You can DYOR on blog.millionero.com for market insights and updates. When you’re ready, trade spot and perpetuals on Millionero and take advantage of a user-friendly, low-fee trading experience.