Bitcoin (BTC) price continues its fourth consecutive day of decline, hitting nearly a one-month low on February 3, 2025. The drop—reaching almost 14% since last Friday—was triggered by reports of new tariff plans from U.S. President Donald Trump. This sharp BTC slump also caused a panic-driven flash crash in altcoins. Below, we analyze the key factors behind Bitcoin’s decline and its ripple effects across the crypto market.
Why Is Bitcoin Price Down Today? Trump’s Tariffs Spark Market Turbulence
President Trump announced 25% tariffs on Canada and Mexico, effective February 4, with similar measures planned for the EU. The news sent shockwaves through global markets:
- Dow futures fell 1.4% (600+ points).
- S&P 500 futures dropped 1.9%.
- Nasdaq futures slid 2.4%.
The U.S. dollar surged 1% against major currencies, creating a risk-off environment that pressured Bitcoin.
👉 Bitcoin’s price action reflects broader market nerves.
Expert Insight:
"Geopolitical shifts like tariffs introduce short-term volatility. Bitcoin’s reaction mirrors past drops during trade tensions," said Sumit Gupta, CoinDCX Co-Founder.
BTC now trades at $95,700** (-2.3% daily), testing support at **$91,281—a level last seen in mid-January.
Will Bitcoin Fall Further? Technical Analysis Reveals Critical Support Levels
Despite the sell-off, BTC holds key support at $92,000**, tested successfully eight times since December 2024. A bullish pin bar two weeks ago preceded January’s all-time high of **$109,312.
Key Levels to Watch:
- $92,000: Current consolidation floor.
- $83,000: 200-day EMA, a make-or-break level for the uptrend.
Nigel Green, deVere Group CEO:
"Markets will remain reactive. Investors must strategize to mitigate risks and capitalize on repricing."
Altcoin Bloodbath: Ethereum, XRP, and Memecoins Plunge
Altcoins suffered deeper losses than Bitcoin:
| Cryptocurrency | Decline | Price |
|----------------|---------|-------|
| Ethereum (ETH) | 20%+ | $2,150 |
| XRP | 30%+ | $1.80 |
| Dogecoin (DOGE)| 25% | $0.27 |
| TRUMP Memecoin | 17% | $17.50 |
👉 Altcoin volatility highlights market fragility.
$2.3 Billion in Liquidations Amplify Market Fear
Leveraged positions worth $2.26 billion were liquidated in 24 hours, including:
- $611.6M in Ethereum (worst-hit).
- $411.8M in Bitcoin.
The Crypto Fear & Greed Index dropped to 39 ("Fear"), with total market cap falling to $3.11 trillion—a November 2024 low.
Bitcoin Price FAQ
1. Why is Bitcoin falling?
Trump’s tariffs spurred dollar strength and stock market declines, driving investors away from riskier assets like BTC.
2. Will BTC recover?
Long-term support at $92,000 and the 2024 halving suggest potential recovery, but short-term volatility persists.
3. What’s driving crypto’s drop?
Macro uncertainty, leveraged position liquidations, and altcoin panic fueled the sell-off.
4. What’s Bitcoin’s 2025 price prediction?
Estimates range from $150,000–$250,000, though geopolitical and macroeconomic factors could alter trajectories.
Final Thought: Bitcoin’s dip underscores its sensitivity to macroeconomic shifts. While technical support offers hope, traders should brace for continued volatility.
👉 Stay updated on crypto market trends.
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