Ether, altcoins dive double digits as Trump tariffs take further toll
Ether and major altcoins like Cardano, Avalanche, and XRP dropped over 20% following US President Donald Trump's imposition of tariffs on imports from China, Canada, and Mexico. On February 3, Ether fell by 16% within an hour, reaching $2,368 before recovering slightly to $2,521, marking a 38% decrease from its December 2024 peak of $4,078. Other altcoins experienced similar sharp declines, contributing to an 11.4% drop in the overall crypto market cap, which is now at $3.17 trillion. Markus Thielen from 10x Research noted that the market reacted to stop-loss triggers and decreasing trading volumes, indicating a lack of investor confidence. Despite expectations, the potential impact of the tariffs was not fully priced in as investors had recently focused on other market dynamics. The downturn in the crypto market correlated with a significant drop in the Crypto Fear & Greed Index, and while Bitcoin also fell, it maintained a dominance that signals shifting trader sentiment. Thielen expressed concerns about prolonged market uncertainty stemming from the tariffs announcement.
Source 🔗