Crypto Market Faces Volatility: Bitcoin, Ethereum, XRP and Solana Hit Hard Amid Global Trade Fears
The cryptocurrency market is enduring another turbulent day, as major assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and others face sharp price declines. This dramatic dip follows the announcement of new U.S. trade tariffs that have sparked global economic uncertainty, sending investors fleeing from riskier assets, including digital currencies.
Bitcoin Price Dips Below $93,000 Amid Tariff Concerns
As of February 3, 2025, Bitcoin (BTC) is experiencing notable volatility, trading at approximately $92,855, marking a 6.86% drop from its previous close. Throughout the day, Bitcoin fluctuated between a high of $100,461 and a low of $91,995.
The downturn is primarily attributed to the newly imposed 25% tariffs on imports from Mexico and Canada, and 10% tariffs on Chinese goods, as announced by U.S. President Donald Trump. As tensions rise and the prospect of retaliatory tariffs loom, investors have grown anxious, causing a shift away from riskier assets like cryptocurrencies.
Technical analysis suggests Bitcoin may be forming a double top pattern, signaling potential for further downside. Key support levels include $92,000, $87,000, and $74,000, while $106,000 remains a significant resistance level.
Ethereum and Solana: Heavy Losses Across Major Altcoins
Ethereum (ETH) has also faced substantial losses, trading at $2,472.16, reflecting a 20.26% drop from its prior close. Ethereum’s price fluctuated between $3,131.63 at its peak and $2,331.05 at its lowest. This decline highlights the broader market correction, with Ethereum’s pivotal role in decentralized finance (DeFi) and smart contracts under scrutiny amid the current volatility.
Solana (SOL) saw an 8.64% decline, trading at $191.37. The token experienced a range from $215.27 to $181.14 during the day, showing resilience despite the downturn. However, Solana’s future performance remains uncertain as macroeconomic factors weigh heavily on the market.
XRP Faces Significant Pressure: A 23.86% Drop
XRP, one of the hardest-hit cryptocurrencies, has dropped by 23.86% to trade at $2.17. The price has fluctuated between $2.92 and $1.98 throughout the day. Recent whale movements, with 70 million XRP tokens dumped on exchanges, have contributed to this volatility. Despite the correction, XRP’s future movements remain uncertain, with indicators like the Relative Strength Index (RSI) suggesting neutral market sentiment.
Cardano and Other Altcoins Plunge
Cardano (ADA) has also seen significant declines, dropping 26.86% to $0.642332. With its trading range from $0.895031 to $0.56424, Cardano is under considerable pressure, and its momentum remains bearish due to a Moving Average Convergence Divergence (MACD) crossover signaling a potential long-term correction.
Biggest Gainers Amid the Market Chaos
Despite the widespread losses, some cryptocurrencies have managed to gain ground. Fartcoin (FARTCOIN), for example, emerged as a notable gainer, increasing by 7.20% to $0.6904. Meme coins like Fartcoin are gaining attention from speculative traders, despite the overall market’s volatility.
Biggest Losers of the Day
Several cryptocurrencies have taken a significant hit, with Filecoin (FIL) leading the biggest losers, down by 31.97% to $2.90. Floki Inu (FLOKI) is also in the red, falling 31.56% to $0.00008077, while SPX6900 (SPX) plummeted by 30.73%, bringing its price down to $0.7092.
Other notable decliners include Gala (GALA) (-30.02%), Artificial Superintelligence Alliance (FET) (-29.87%), dogwifhat (WIF) (-29.20%), and Celestia (TIA) (-28.92%).
Market Outlook: The Next Few Days Are Critical
Today’s market behavior shows the fragility of the cryptocurrency space as investor sentiment shifts due to macroeconomic factors like trade tariffs. Bitcoin and Ethereum’s significant declines point to increased volatility across the board, with XRP and Cardano also facing steep losses.
However, meme coins like Fartcoin are managing to capture investor interest despite the broader market pullback. The next few days will be crucial in determining whether Bitcoin can stabilize above its key support levels or if further downside awaits. Investors should remain cautious as global trade tensions continue to shape the market’s direction.
