Why is Bitcoin CS Down Today? Check out the causes of BTC and Altcoin Dropping

Bittime - Digital asset markets have come under immense pressure in recent days, with Bitcoin and major altcoins experiencing significant declines. 

Bitcoin fell drastically to touch its lowest level in recent months. This movement caused panic among investors and speculators. So, what is the main cause of Bitcoin's decline today? The following is the explanation.

External Factors Triggering Bitcoin's Decline

One of the main factors that caused Bitcoin to fall drastically was the decision of US President, Donald Trump, to impose new tariffs on Canada, Mexico and China. This decision triggered global economic uncertainty and had a direct impact on the crypto market. Apart from that, the increase in interest rates by the Bank of Japan also worsened market sentiment.

The global digital asset market capitalization also shrank by more than 3% in less than 24 hours, wiping more than $140 billion from the market. The Crypto Fear & Greed Index fell to the Neutral zone at 47, indicating that investors are starting to lose confidence in digital assets in the short term.

Also read: Tesla Profits $589 Million from Bitcoin Investment

Impact of Trade War on Bitcoin Price

Rising trade tensions due to Donald Trump's tariff policies have also had a major impact on Bitcoin prices. Tariffs of 25% for Mexico and Canada and 10% for imports from China raise concerns regarding inflation and global economic growth. As a result, Bitcoin fell today as investors started to avoid high-risk assets.

The latest inflation data in the US showed increases for three consecutive months, adding to uncertainty in financial markets. US stocks also recorded weakness due to investors' concerns about the impact of the increasingly widespread trade war.

Massive Liquidation in the Crypto Market

Intense selling pressure in the crypto market led to massive liquidations. Data from Coinglass shows that more than $700 million in long and short positions was liquidated in the past 24 hours. Bitcoin and Ethereum are the digital assets most affected, followed by altcoins such as SOL, DOGE, XRP, and others.

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Additionally, the US dollar index (DXY) jumped to 108.50, indicating the strengthening of the US dollar against other assets, including Bitcoin. The 10-year US Treasury yield also rose above 4.54%, which is usually negatively correlated with the price of Bitcoin. In other words, the stronger the US dollar, the more likely Bitcoin is to fall drastically.

Also read: 4 Ripple Strategies: RLUSD, Asset Tokenization, Impact on XRP Price

Expert Predictions: Will the Market Recover?

Some analysts predict that this selling pressure could continue in the next few days. Skew, a well-known crypto analyst, said that the market is experiencing "short-term chaos" caused by tariff uncertainty. 

Meanwhile, data from Goldman Sachs shows a sharp increase in short positions against US stocks, which could further pressure the crypto market.

Currently, Bitcoin is on the verge of crisis. If the BTC price falls below the $95k level, a massive sell-off could occur. The double-top pattern in the daily chart is also an indication that the bearish pressure is still not over. Investors are advised to remain cautious and monitor the latest developments in global markets before making investment decisions.

With market conditions still uncertain, it is important to remain vigilant and understand the factors that influence Bitcoin and other altcoin price movements.

FAQ

Why did the Bitcoin price drop drastically today?

Bitcoin fell drastically due to macroeconomic factors such as trade tariffs imposed by the US, increasing inflation, as well as massive sell-offs that led to liquidations in the crypto market.

Are altcoins also experiencing a decline?

Yes, altcoins such as Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and XRP also experienced a decline of more than 5% in the last 24 hours due to market uncertainty.

What are the future prospects for Bitcoin?

Experts predict the crypto market is still in a correction phase. If Bitcoin falls below $95k, there is a possibility of a major sell-off occurring. However, price movements also depend on external factors such as global economic policies.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

coingape.com, Why Is Crypto Market Down Today, Will Trade War Trigger Major Crash Ahead?, accessed February 3, 2025.

Author: AWW