Crypto Meltdown: Trump’s Tariffs Turn Bitcoin into a Sad Emoji 😢

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So, President Trump decided to play a game of “let’s poke the bear” with China, Mexico, and Canada by slapping on some import taxes. And guess what? The crypto market took a nosedive on Feb. 1, like a toddler who just lost their ice cream cone. Bitcoin? Oh, it fell by 5%. Ouch! 😬

Starting Feb. 1, the U.S. is throwing a 25% tariff on imports from Canada and Mexico, and a cheeky 10% on Chinese goods. Because why not add a sprinkle of chaos to our already complicated trade wars? 🎉

Fast forward to Feb. 3, and Bitcoin (BTC) is having a rough day. It plummeted over 5%, hitting a low of about $91,200 before doing a little bounce back to around $94,000. It’s like watching a rubber ball that’s lost its bounce. 🏀

Even with this little recovery, BTC is still about 13% below its all-time high of $109,000. Trading volume? Oh, it surged by more than 200%! Talk about panic selling! It’s like Black Friday, but for crypto. 🛒

Meanwhile, the global crypto market cap decided to take a vacation, dropping nearly 12% to about $3.15 trillion. Who knew numbers could be so dramatic? 📉

Let’s not forget that after Trump’s inauguration on Jan. 20, Bitcoin and its altcoin buddies were partying hard with significant price increases. But now? Well, let’s just say the party’s over, and the hangover is real. 🍾➡️🤢

And speaking of hangovers, Bitcoin’s crash has sent altcoins spiraling down with it. In the last 24 hours, Ethereum (ETH) has dropped nearly 20%, Ripple (XRP) by 22%, Solana (SOL) by 8%, and Binance Coin (BNB) by over 15%. It’s like a crypto funeral out there. ⚰️

When trading volume rises while prices dip, it’s usually a sign of panic. Traders are offloading their assets like they’re hot potatoes. Long-term investors? They’re selling at lower profits or even losses. It’s like watching a sad movie where everyone loses. 🎬😢

This behavior screams capitulation among long-term holders, a classic move during bearish trends. And guess what? Experts, including BitMEX CEO Arthur Hayes, are warning us that a “financial crisis” might be lurking around the corner. Great, just what we needed! 🙄

60% of American plebes don’t have $1k of emergency funds. The Fed is “worried” about inflation. So Trump decides to hike energy prices via tariffs? He ain’t a fool, maybe he is trying to trigger a mini financial crisis? It’s def in the maybe column.

— Arthur Hayes (@CryptoHayes) February 2, 2025

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2025-02-03 07:10