Crypto Market Cap Drops by 9.51% as Bitcoin, Ether, and Altcoins See Red After US President Trump's Tariff Announcement

Crypto market volatility surged over the weekend following the US President Donald Trump's announcement of new tariffs on imports from China, Mexico, and Canada.

Cryptocurrency market volatility surged on Monday, February 3, following US President Donald Trump's announcement of new tariffs on imports from China, Mexico, and Canada.

Bitcoin recorded its sharpest price drop in months across both domestic and international exchanges. On global platforms, BTC fell nearly seven percent to trade at $94,303 (roughly Rs. 82 lakh) as of 09:10 IST, according to CoinMarketCap. Before the tariff announcement, Bitcoin was priced around $104,002 (roughly Rs. 90.1 lakh).

On Indian exchanges like BuyUcoin, BTC slipped by approximately five percent to trade at $101,116 (roughly Rs. 88 lakh).

The world's second-largest cryptocurrency, Ether, registered bigger losses than Bitcoin in the last 24 hours. On international exchanges, ETH lost 19.51 percent to trade at $2,497 (roughly Rs. 2.17 lakh). The asset saw a similar drop on Indian exchanges to claim the price point of $2,750 (roughly Rs. 23.9 lakh).

Pi42 co-founder Avinash Shekhar elaborated on the market situation, stating, “The fortune of digital assets depends on the macroeconomic factors and confidence among investors. Donald Trump imposing tariffs on Canada, Mexico, and China led to nearly $2 billion (roughly Rs. 17,425 crore) in liquidations in the crypto market, leaving the price charts bleeding red.”

The crypto price tracker by Gadgets 360 showed losses next to a majority of altcoins on Monday. These include Cardano, Avalanche, Polkadot, Uniswap, Litecoin, and Leo.

Losses also struck Monero, Cosmos, EOS Coin, and Bitcoin SV among other altcoins on Monday.

The overall crypto market cap fell by 9.51 percent in the last 24 hours. The present valuation of the sector stands at $3.04 trillion (roughly Rs. 2,64,76,869 crore), as per CoinMarketCap.

“The crypto market's sell-off is said to be the aftermath of US President Trump's tariff decision. This came as a shockwave across the globe and the recent plunge in the crypto markets displays the rise in fear among the market participants,” the CoinDCX market desk told Gadgets 360, while asking investors to tread cautiously with their financial decisions.

Meanwhile, Iota, Status, and Bitcoin Hedge emerged among a handful of altcoins that managed to hold onto small gains on the price chart on Monday.

“Investors should closely monitor geopolitical developments, as volatility is likely to continue until further tariff relief is implemented,” Edul Patel, CEO Of Mudrex told Gadgets 360.

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