Bitcoin begins February amidst a significant sell-off, with BTC/USD nearing $90,000 as fear spreads due to a new US trade war, impacting both crypto and stock markets. The trade war, initiated by President Trump, has invoked concerns about financial stability, causing a sharp decline in various altcoins and leading to $2.23 billion in liquidations in the crypto market. Bitcoin's market cap dominance spiked to 64.33%, its highest in nearly four years. As traders react to these developments, short-term holders face critical tests of their aggregate cost basis, which is now under $92,000. The Crypto Fear & Greed Index has also dropped sharply, indicating widespread pessimism among market participants. Eyewitness accounts suggest a potential bounce back for Bitcoin, contingent upon the stabilization of support levels. As expectations grow regarding broader economic impacts, speculation remains about how the Federal Reserve's monetary policy will evolve in response to these upheavals.

Source 🔗