

TLDR
- Bitcoin dropped below US$92k as US tariffs and retaliatory trade measures fueled uncertainty
- Altcoins like Ethereum, XRP, and Solana also saw steep declines
- Rising inflation concerns as US jobs report may influence crypto markets
Bitcoin sinks while trade tensions rise
Bitcoin’s price tumbled this week, falling to around US$91.2k amid new fears of US tariffs and ongoing market uncertainty. Let’s take a closer look.
Key highlights
- Market volatility amid tariff concerns: Investor sentiment remains cautious as tariffs imposed by the U.S. on Canada, Mexico, and China prompt retaliatory measures, heightening uncertainty.
- Bitcoin dips below $92K: Bitcoin is trading at around US$91,200, reflecting a decline of more than 7% over the past week as macroeconomic pressures weigh on digital asset markets.
- Altcoins face sell-off: XRP (-26%), Ethereum (-22%), and Solana (-18%) have experienced sharp declines, with traders reacting to escalating trade tensions and broader risk-off sentiment.
- Crypto liquidations go over US$2.1B: Market volatility has led to more than US$2.1B in liquidations over the past 24 hours, according to Coinglass data.
- Fed maintains rates, no QE support: The Federal Reserve’s decision to hold interest rates and delay quantitative easing continues to apply downward pressure on altcoins.

The weekly trading stats as of Monday, February 3rd at 11:00 am AEDT, based on data from Tradingview in USD.
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The cryptocurrency market is feeling the heat from the escalating trade tensions in the West. The US’s recent tariffs on select countries and the consequent retaliatory measures have created a ripple effect of uncertainty across the global markets.
BTC’s price decline leads to US$2.1B in liquidations
Bitcoin’s price pullback has triggered a cascade of pain for leveraged traders. What began as US$550 million in wiped-out positions quickly snowballed into a staggering US$2.1 billion liquidated in less than 12 hours as the price dropped to US$91,200.

Source: Coinglass
The impact of tariffs on Bitcoin and crypto markets
US President Donald Trump’s recent imposition of tariffs, 25% on imports from Canada and Mexico, and 10% on Chinese goods, has intensified global trade tensions. These measures have prompted retaliatory actions from the affected nations, with Canada and Mexico both announcing their own tariffs on US products, escalating the situation.
Escalating trade tensions: Understanding the impact
The growing trade tensions between major economies have created an environment of heightened economic uncertainty, which can influence investor behaviour. When uncertainty rises, investors often shift their focus towards lower-risk assets. Cryptocurrencies, such as Bitcoin and leading altcoins, are often considered risk-on assets, meaning they are more sensitive to market volatility.
As tariffs are introduced, concerns about potential increased consumer prices and inflationary pressures are rising. This shift in sentiment has impacted a variety of markets, including digital assets, prompting some investors to move toward other options as they manage risk in uncertain times. However, it's important to note that while the broader market faces challenges, the crypto market remains a dynamic and evolving space with long-term potential.
Key takeaways:
- Bitcoin’s market volatility: The uncertainty caused by the trade disputes has led to increased volatility in both traditional and crypto markets.
- Growing inflation concerns: The US tariffs are anticipated to raise the cost of imported goods, contributing to higher inflation rates, which can erode purchasing power and affect investment strategies.
- Market mood shift: Investors are now closely watching the upcoming US jobs report, scheduled for release on Friday, as it could further influence market sentiment.
Key drivers this week:
- Retaliatory measures against tariffs: The responses from Canada, Mexico, and China, including the imposition of their own tariffs on US goods, are critical factors influencing the state of the market.
- Economic indicators: Upcoming reports on inflation, consumer spending, and manufacturing output will provide insights into the broader economic impact of the tariffs.
- Policy developments: Statements and policy adjustments from the US Federal Reserve and other financial authorities will be closely monitored for any indications of a potential intervention to mitigate economic disruptions caused by the trade tensions.
It is a market driven by macro events, Bitcoin slipping to US$91,200, inflation concerns mounting due to escalating trade tensions, and investors bracing for the US jobs report. The broader theme remains risk-off sentiment, as tariffs shake confidence and push investors toward safer options. Meanwhile, all eyes are on how policymakers and markets react in the coming days.
Let’s see what happens in the next week.
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