Crypto Market Declines by 20% As Trade War Fears Rise

The crypto market has recently witnessed an enormous hit. As per Satoshi Club, a more than twenty percent plunge has taken place in the wider crypto sector and has gone through a more than 20% decline over the past weeks. As a result of this, the crypto market’s cumulative market capitalization has plunged from $3.6 trillion to $2.8 trillion.

This sheer dip has triggered significant concerns within the crypto community. Additionally, this slump is also likely to influence investor sentiment to a great extent. Satoshi Club, a crypto analytical platform, has shared the facts and figures related to the crypto market through its official X account, discussing the factors behind the declined market.

Crypto Market Hit by 20% Dip from $3.6 Trillion to $2.8 Trillion Amid Rising Trade War Fears

Satoshi Club’s analysis has displayed a noteworthy 20% decrease in the crypto market, starting from February 1st. On that date, the U.S. government unveiled a new wave of tariffs aimed at key trading collaborators. These trading partners took into account, China, Mexico, and Canada.

At first, the markets experienced a provisional relief considering the exemptions. Nonetheless, the respective exemptions were shortly reversed, rekindling apprehensions about the influence of trade pressure on the worldwide economy.

The 2nd half of the past month saw intensified crypto sell-offs because of several negative developments. A key factor among them was the huge Bybit exploit, which shook investor confidence, triggering concerns about broader vulnerabilities. Moreover, the fears concerning exclusive tariffs from the EU jurisdiction worsened economic uncertainty, leading to de-risking by retail and institutional investors.

Inflation and Fed Uncertainty Intensify Market Pressure

According to Satoshi Club, the crypto downturn was further exaggerated by an additional ten percent tariff in the case of Chinese goods. This also escalated the tensions existing between the two biggest economies of the world. Along with this, the increasing inflation and uncertainty surrounding the upcoming monetary policy of the Federal Reserve have also added to this decline.