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 decreased by 4-5% today, altcoins have suffered an even greater decline, with Ethereum (ETH), XRP, Solana (SOL), and BNB Coin (BNB) each witnessing a 10-15% drop. As a result, Bitcoin dominance has reached a four-year high.
Donald Trump’s Trade War Has a Strong Impact on Bitcoin and Altcoins
February has begun with a highly bearish sentiment in the crypto market, despite historically being the strongest-performing month. The BTC/USD pair has plummeted by as much as $6,000 since the weekly close, reaching its lowest level since January 13. This decline has brought Bitcoin back to the bottom of the trading range it has maintained since November.
According to Coinglass data, the liquidations in the crypto market within a 24-hour period have surged to $2.29 billion, with long liquidations exceeding $1.91 billion. Well-known crypto market analyst Roman Trading remarked:
“These are wild times in this range. I must admit, I didn’t expect to see the lower 90s again, but here we are. Bullish diversions, Stochastic Reset, and sitting in a range low support area. It would make sense to see a bounce here soon.”
Roman has joined the growing group of analysts expressing optimism that Bitcoin may 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, asserting that this action will prove beneficial in the long term. During a press conference on Monday, Trump stated:
“We may experience some short-term pain, and people understand that. But in the long run, the United States has been taken advantage of by virtually every country in the world.”
BTC Dominance Suggests an Altseason is on the Horizon?
Shifting the focus to altcoins, trader and analyst Skew highlighted the occurrence of “capitulation wicks” as numerous tokens plunged by 20% or more. The altcoin market is experiencing a complete bloodbath, with most digital assets falling below their crucial 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 takes off. Crypto analyst Juice on the X platform posted:
“BTC.D is displaying almost the exact same pattern as it did just before the last alt season began, zoom in and take a look! 2 red weekly candles, followed by 2 small green weekly candles, followed by 2 huge green candles. Look at what happens next… ALTSEASON.”
Source: Juice
Former BitMEX CEO Arthur Hayes had recently predicted a Bitcoin price crash to $75K, as mentioned in our previous 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.”