Crypto News: Crypto Market Lose $12.7B per Hour, $760B Total Since Trade Wars

Crypto Market Loses $760 Billion Amid Market Downturn

The crypto market has experienced a significant downturn, losing $12.7 billion per hour over a 60-hour period, totaling a loss of $760 billion. This market decline follows a shift in sentiment attributed to a market reversal.

Tariffs Trigger Sell-Off

The dramatic sell-off was sparked by United States President Donald Trump's announcement of tariffs on imports from China, Canada, and Mexico on February 3rd. This announcement sent shockwaves through global risk assets, affecting both cryptocurrencies and traditional markets.

Altcoins Take the Brunt

Altcoins, which are cryptocurrencies other than Bitcoin, have been hit particularly hard by the sell-off. Ethereum (ETH) plummeted 16%, with other major altcoins like Avalanche (AVAX), XRP, Chainlink (LINK), and Dogecoin (DOGE) dropping over 20% in the past 24 hours.

Bitcoin Shows Relative Stability

Bitcoin (BTC), on the other hand, has shown relative stability amidst the chaos. While it fell 6.8% over 24 hours, it avoided the worst of the crash. TradingView data reveals Bitcoin's dominance, or its share of the total crypto market, rose to 61% during the sell-off.

Factors Behind Altcoin Decline

The decline in altcoins has been attributed to a combination of stop-loss triggers and a lack of participation from retail investors. Trading volumes had been declining for weeks, indicating waning appetite and a lack of confidence among investors.

Market Sentiment Hit

The Crypto Fear & Greed Index plunged 16 points to 44 out of 100 on February 3rd, marking its lowest level since October 11th, 2023. This drop into "Fear" territory highlights the growing unease among investors as geopolitical risks escalate.

Outlook Remains Uncertain

The road ahead for the crypto market remains uncertain. While Bitcoin's resilience offers a temporary haven, the broader crypto market's recovery hinges on stabilizing equities and resolving trade tensions. Altcoins face a particularly challenging outlook unless market sentiment improves significantly.