Crypto Market Shaken: Bitcoin Dives Below $30K as Tariff Fears and Liquidations Surge

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02.02.2025 38 times read 0 Comments

Press Review: Crypto Market Faces Turbulence Amid Tariffs and Price Drops

The cryptocurrency market has been experiencing significant volatility, with Bitcoin (BTC), XRP, and Dogecoin (DOGE) leading the downturn. According to CoinGape's report titled "Why Are Bitcoin, XRP, and Dogecoin Prices Falling Today?", the combined crypto market cap dropped by 2.06% to $1.43 trillion as of their latest analysis. The price of BTC fell below its psychological support level at $30,000 after briefly trading above it for a historic monthly close.

CoinGape highlights that liquidations across cryptocurrencies reached $382.51 million within 24 hours due to leveraged positions being wiped out in response to tightening ranges between highs of $31,755 and lows near $30K for BTC specifically. Altcoins like XRP saw a sharp decline of over 6%, while DOGE plummeted more than 7%. Analysts speculate these movements are tied closely to broader economic uncertainties impacting futures traders' strategies.

Trade Tariffs Add Pressure to Crypto Market

A separate article from DLNews titled "Bitcoin drops below $30,000 as tariff concerns rattle markets — analysts split on what’s next" delves into how geopolitical tensions have exacerbated this bearish trend in digital assets. Recent announcements of proposed tariffs—25% on imports from certain countries alongside an additional 10% targeting goods from specific trading partners—have sent shockwaves through global financial systems.

This policy has raised fears surrounding inflationary pressures caused by rising import costs, contributing to uncertainty across global markets. These developments have subsequently spilled over into the already fragile cryptocurrency sector, further pressuring valuations and impacting sentiment among investors.

XRP Gains Traction Despite Regulatory Challenges

An insightful piece published by The Motley Fool examines whether legacy tokens such as Ethereum (ETH), Chainlink (LINK), or XRP remain viable investments heading deeper into volatile times marked by shifting regulatory landscapes. XRP, in particular, has shown resilience amid ongoing scrutiny and legal proceedings, with market participants remaining cautiously optimistic about the token's potential recovery in coming cycles.

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