Over $1.8B in long positions liquidated as traders misjudged the market bottom. Tariff wars and rising inflation fears push investors away from risk assets. U.S. tax policies on crypto holdings add further selling pressure. The crypto market is in freefall, with close to a $200 billion drop in total market value in the last day. Bitcoin and major altcoins tumbled as traders reconsidered their positions. Experts point to two main things for the sharp downturn: growing global trade tensions and a wave of leveraged liquidations. WHY ARE BITCOIN AND CRYPTO DUMPING? BTC AND ALTS HAVE ERASED NEARLY $200B IN THE LAST 24 HOURS. HERE ARE THE 2 BIGGEST REASONS BEHIND THE DUMP. 1) TARIFF WARS THE US IS IMPOSING TARIFFS ON SEVERAL COUNTRIES, INCLUDING CANADA, MEXICO, AND CHINA. NOT ONLY THAT, IT'S ALSO… pic.twitter.com/nAgqmEHBZI — Ash Crypto (@Ashcryptoreal) February 3, 2025 Tariff Wars, Fuel Inflation Concerns, Strengthening the Dollar The U.S. government under the Trump administration is putting in place new tariffs on several countries, including China, Canada, Mexico, and even the European Union and BRICS nations. This move is raising fears of higher i… The post Global Trade Fears and Leverage Cascade Trigger $200 Billion Crypto Market Collapse appeared first on Coin Edition .
