Crypto sentiment has sharply dropped in the last 24 hours as Crypto Fear & Greed Index has fallen by 24 points to 25, which means ‘Extreme Fear.’ This change of sentiment has also affected the price of Bitcoin which has dropped by 4% below $92,000, the lowest it has been since November 23rd.
The market decline comes at the time when US President Donald Trump reiterated his plans to introduce tariffs against Canada and Mexico that has caused concern among investors.
On February 24, Trump stated that his proposed tariffs of 25% on imports from these countries, except Canadian energy, will be implemented. Such an unpredictable situation has raised concerns that the trade relations may slow down the economy, thus causing the crypto markets to fall drastically.
The value of Bitcoin decreased from approximately $105,000 to about $92,900 after the tariff was announced on February 1, according to CoinMarketCap data. This was followed by the dumping of more than $2.2 billion worth of Ether, and traders began to get anxious with the increasing tensions in trade.
Even though Trump had suspended the tariffs in early February, the continuation of these measures has put a lot of pressure on the markets. Besides the crypto market, the financial markets have not been very friendly as well, especially in the recent past.
The S&P 500 declined by 2.3% in the last five trading sessions and the Nasdaq Composite was down by 4%. The total market capitalization of cryptocurrency has shrunk by almost 8% from $3.31 trillion to $3.09 trillion due to the general issues in the market.
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