The post Bitcoin Market Cap Dominance Rises Amid Trade War Fears While Altcoins Experience Significant Sell-Offs appeared on BitcoinEthereumNews.com.

As fear grips the cryptocurrency market due to fresh trade tensions, Bitcoin’s dominance surges while altcoins face unprecedented sell-offs, creating a stark juxtaposition in the crypto landscape. Market sentiment has plunged sharply, mirrored in the Crypto Fear & Greed Index, which has seen a dramatic drop of over 30 points within just three days. “The beatings shall continue until moral improves,” warned Arthur Hayes, former CEO of BitMEX, commenting on the dire macroeconomic climate. Altcoin Capitulation Boosts Bitcoin’s Market Share February commenced with a striking wave of red in the cryptocurrency sector, traditionally a strong month for Bitcoin. Recent data from Cointelegraph Markets Pro and TradingView indicates that BTC/USD has faced a downward shift of $6,000 since the last weekly close, bringing it to its lowest trading range since mid-January. Popular trader CrypNuevo forecasted this downturn by analyzing order book liquidity, stating that the market is attracted to fill the “wick” formed during January’s lows. He remarked, “$94.7k is the main liquidation level so it’s very possible that price pushes all the way there.” The ramifications of the altcoin capitulation are palpable, with many tokens plunging by 20% or more, signaling a significant loss of confidence among investors. Market Reaction to Trade War Escalation The sharp decline in cryptocurrency values correlates directly with the recent trade war announcements by U.S. President Donald Trump, who has initiated tariffs that threaten economic stability. The immediate impact on the broader markets has been severe, with the S&P 500 losing a staggering $1 trillion in value as futures opened to the news of tariffs. This upheaval extends beyond stocks, as The Kobeissi Letter reflected on the grim state of the markets, “Today, markets are trading back at those lows. Will the gap down hold this time?” indicating the uncertainty that weighs heavily on investors.…

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Filed under: News - @ February 3, 2025 8:16 am