Crypto Markets Decline Amid Trade War Fears from New Tariffs
Crypto markets are experiencing significant declines due to new tariffs imposed by President Trump, which include a 25% tariff on imports from Canada and Mexico, and a 10% tariff on China. This has sparked fears of a renewed trade war, reminiscent of tensions in 2018.
Key points include:
- The consensus is that the current downturn in crypto prices, including BTC, may be temporary; however, analysts suggest volatility could persist.
- Trump's tariffs raise concerns about prolonged market instability, with potential retaliatory measures from affected countries like Canada and China.
- Recent tariffs affect $1.3 trillion worth of goods, significantly larger than previous measures.
- Market reactions show negative perpetual funding rates for major altcoins such as ETH, indicating a preference for short positions.
- BTC is currently trading at $95,631.55, down 6.3%, while ETH is down 21.9% at $3,734.92.
Upcoming events relevant to the market include:
- Feb. 4: Pepecoin (PEPE) Halving.
- Feb. 5: Boba Network’s Holocene hard fork.
- Feb. 6: Shentu Chain network upgrade.
Derivatives positioning shows BTC and ETH options reflecting bearish sentiment, particularly around March expiration dates.
Overall, traders should monitor ongoing geopolitical developments and their potential impact on market stability.