Amid the escalating concerns over Trump’s trade wars, Bitcoin and altcoins experienced a significant correction today, as we have previously discussed. While Bitcoin has dropped by 4-5% today, altcoins have suffered a more severe decline, with Ethereum (ETH), XRP, Solana (SOL), and BNB Coin (BNB) each seeing a 10-15% decrease. As a result, Bitcoin dominance has reached a four-year high.
Donald Trump’s Trade War has had a strong impact on Bitcoin and altcoins
The crypto market has started February on a bearish note, despite historically being the strongest-performing month. BTC/USD has fallen by as much as $6,000 since the weekly close, reaching its lowest level since January 13. This drop has brought Bitcoin back to the bottom of the trading range it has maintained since November.
Data from Coinglass shows that 24-hour crypto market liquidations have surged to $2.29 billion, with long liquidations surpassing $1.91 billion. Well-known crypto market analyst Roman Trading commented:
“These are wild times within this range. I must admit, I didn’t expect to see the lower 90s again, but here we are. Bull divergences, Stoch Reset, and sitting in the range’s low support area. It would make sense to see a bounce here soon.”
Roman has joined the growing number of analysts expressing optimism that Bitcoin can stabilize and rebound without breaking out of its established range.
President Donald Trump has fulfilled his promise to impose 25% tariffs on Canada and Mexico, claiming that this move will be beneficial in the long run. In a statement to reporters on Monday, Trump said:
“In the short term, we may experience some minor pain, and people understand that. But in the long term, the United States has been taken advantage of by nearly every country in the world.”
BTC Dominance Suggests Altseason is Coming?
Turning to altcoins, trader and analyst Skew highlighted the occurrence of “capitulation wicks,” as numerous tokens plunged by 20% or more. It is a complete bloodbath in the altcoin market, with most digital assets falling below their key support levels.
As Bitcoin dominance reached new highs earlier today, market analysts have become hopeful that this could be the final correction before the altcoin season begins. Crypto analyst Juice on the X platform posted:
“BTC.D is exhibiting almost the exact same pattern as it did just before the last alt season kicked off, zoom in and take a look! 2 red weekly candles, followed by 2 small green weekly candles, followed by 2 huge green candles. Look what happens next… ALTSEASON.”
Source: Juice
Former BitMEX CEO Arthur Hayes recently predicted a Bitcoin price crash to $75K, as we previously mentioned in our report. In his recent message on the X platform, Hayes wrote:
“The beatings shall continue until morale improves. The pain stops when a TradFi outfit is on the verge of bankruptcy. Then the Fed reluctantly joins team Trump and prints that money. And then you better be ready to buy crypto like you have never bought before.”