Riskoff: Global Crypto Market Cap Sinks Below $2.3trn
The global crypto market dropped by about 2% in 24 hours to $2.28 trillion, driven by a macro-driven sell-off triggered by new U.S. tariff plans.
The market shows a moderate negative correlation (-46%) with Gold, indicating a rate-sensitive move. On February 23, President Donald Trump announced plans to impose new 15% tariffs on global goods, sparking immediate market anxiety.
Bitcoin fell by over 5% in two hours, dragging the total market down in a classic macro-driven risk-off move. Traders said crypto acted as a risk asset, selling off on fears that higher tariffs could slow economic growth and tighten financial conditions.
Crypto analysts advised investors to watch out for political developments on trade policy and their impact on broader equity futures.
The tariff news triggered derivatives unwind. BTC liquidations surged 984% in 24h to $228.36M, predominantly from long positions. This selling pressure cascaded, exacerbating the drop. High leverage in the system acted as an accelerant. The immediate catalyst has passed, but sentiment remains fragile.
The key near-term event is the U.S. February employment report, which will influence expectations for Fed policy. For the market cap, holding above the $2.17T yearly low is critical for stability. A rebound faces initial resistance at the 78.6% Fibonacci retracement level near $2.35 trillion.
The market’s next move is contingent on macro data. Strong jobs data could reinforce hawkish Fed expectations, prolonging pressure, while weak data might fuel hopes for policy support.
The market decline was triggered by a geopolitical macro shock, amplified by the unwinding of leveraged positions. The path to stabilisation likely hinges on the upcoming jobs data and Bitcoin’s ability to defend the $2.17 trillion support level. XRP Falls by 4%, SBI Launches Reward Bond for Retail Investors
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