The crypto market plunged into the red, shaving off over $230 billion after President Donald Trump announced that tariffs on Canada and Mexico would be effective in March. As a result, market sentiment sank to extreme fear, with cryptocurrencies registering significant losses. Bitcoin (BTC) plunged below $90,000 and is down nearly 7%, trading at $89,500.
Other cryptocurrencies have registered notable losses as well, with Ethereum (ETH) down over 8% and trading just above the $2,500 level. Ripple (XRP) is down nearly 9% and trading at $2.30. Solana (SOL) was already struggling and saw bearish sentiment around it intensify as its value dropped almost 12% to go below $150 and settle at $141. Dogecoin (DOGE) is down nearly 9%, and Cardano (ADA) has declined over 7% to trade at $0.687. Chainlink (LINK), Stellar (XLM), Litecoin (LTC), Toncoin (TON), Hedera (HBAR), Polkadot (DOT), and Uniswap (UNI) also registered substantial declines. The crypto market cap is down nearly 7%, having slipped below $3 trillion and currently sits at $2.93 trillion.
Crypto Market Sentiment Sinks To “Extreme Fear”
The crypto market sentiment nosedived into extreme fear thanks to a broader market decline after US President Donald Trump reiterated that planned tariffs against Canada and Mexico were moving forward. The Crypto Fear and Greed Index dropped to 25, signaling extreme fear. The latest drop is a 24-point decline from the previous day when the market was neutral with a score of 49. Trump stated during a news conference with French President Emmanuel Macron that the planned 25% tariffs on Canada and Mexico were going ahead on schedule. Trump had agreed to pause the tariffs for 30 days after Canada and Mexico agreed to bolster border protections. The last time Bitcoin hit extreme fear was on September 7, when it dropped to $54,000.
BTC fell 4.5% following the news, dipping below $92,000 to a low of $91,029. The wider crypto market has also registered a substantial decline, with its market cap dropping below the $3 trillion mark.
$200 Million In Crypto Longs Wiped Out
The cryptocurrency derivatives sector has registered substantial liquidations as ETH and other altcoins declined. Data from Coinglass showed that liquidations have piled up in the crypto futures market. Liquidations refer to the forceful closure of an open contract after it accumulates losses to a specified degree. When a large amount of liquidations occur at once, it is called a squeeze. The chances of a squeeze boil down to volatility and leverage.
According to Coinglass, the crypto derivatives sector registered $268 million in liquidations over the past 24 hours. Out of these, $217 million were bullish bets. The reason for the liquidations can be attributed to the fact that altcoins have registered a substantial decline during the window.
Bybit Replenishes Reserves After $1.5 Billion Hack
Bybit has successfully replenished its Ethereum (ETH) reserves days after suffering a hack that resulted in a loss of $1.5 billion. Bybit CEO Ben Zhou confirmed the exchange has fully restored the stolen ETH and ensured customers’ assets remained backed 1:1. Bybit replenished its reserves by securing 446,870 ETH through loans, large investor deposits, and direct purchases. The platform also acquired 157,660 ETH through over-the-counter transactions from crypto investment firms Galaxy Digital, FalconX, and Wintermute. The platform also purchased $304 million worth of ETH from centralized and decentralized exchanges.
Bybit was hacked last week after hackers exploited a vulnerability during a routine transfer between the exchange’s cold wallet and warm wallet. As a result, hackers siphoned off 401,000 ETH to an unknown address. The hack is considered the biggest crypto theft in history.
DekaBank Launches Crypto Trading And Custody Services
DekaBank, a major German investment bank with $395 billion in assets under management, has launched crypto trading and custody services for its institutional clients after almost two years of development. The Frankfurt-based bank’s move comes after it secured regulatory approval for a crypto custody license from the Federal Financial Supervisory Authority (BaFin) while operating under the European Central Bank (ECB). The report stated,
“DekaBank, the asset manager of the country’s largest financial services group, Sparkassen-Finanzgruppe, is marketing its new offering with a focus on security and regulatory compliance.”
Board member Martin K. Muller stated,
“We have the necessary experience, required licenses, and a tested, ready-to-use infrastructure to support savings banks and our institutional clients.”
Several cryptocurrency offerings in Germany’s broader savings bank sector have already been introduced. Institutions like Landesbank Baden-Württemberg (LBBW) have announced partnerships with crypto platforms like BitPanda to allow corporate clients to buy and sell crypto.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) bears had the flagship cryptocurrency in a vice grip as it plunged nearly 5%, going below $92,000 on its way to a low of $91,029. Bearish sentiment has intensified at the time of writing, with the price going below $91,000. BTC is down nearly 6% and trading just above $90,500. The decline is due to rising uncertainty about the impact of tariffs on global trade, leading many investors to reduce risk. As a result, the crypto market plummeted 8%, with BTC wiping out nearly $230 billion from its market capitalization. Jeff Dorman, Chief Investment Officer at Arca, stated,
“Crypto is just weak and has been for eight weeks. Equities, fixed income, and gold have completely shrugged off any data points that have been used to explain weakness. Only crypto is going lower. And that’s largely due to poor sentiment, exploitation from various memecoin failures, and lack of capital to support new token launches.”
With bearish sentiment intensifying, BTC has dipped below key support levels, with fears of a deeper correction taking the price toward $80,000. The chart shows BTC falling below key levels during the current session as sellers take control. BTC started the previous week in the red, falling 0.48% to slip below $96,000 and settle at $95,765. Selling pressure intensified on Tuesday, and BTC dropped to an intraday low of $93,431. However, it recovered from this level to reclaim $95,000 and settle at $95,634, ultimately registering a marginal decline. BTC recovered on Wednesday, registering an increase of nearly 1% and settling at $96,386. Bullish sentiment intensified on Thursday, and BTC rose almost 2% to move past the 20-day SMA and settle at $98,251.
Source: TradingView
However, sentiment changed on Friday after a failed attempt to move past the 50-day SMA. As a result, BTC dropped over 2%, slipping below the 20-day SMA and settling at $96,184. BTC registered a marginal recovery on Saturday and rose to $96,478. However, it was back in the red on Sunday, dropping to $96,084 and ending the weekend on a bearish note. Bearish pressure took hold on Monday as the BTC price collapsed, dropping nearly 5% to slip below key support levels and settle at $91,622. Bearish sentiment has persisted during the current session as BTC fell to an intraday low of $88,247. The price has recovered marginally from this level and is currently trading at $89,322, down nearly 3%.
BTC has slipped below a crucial level at $90,000. If it cannot reclaim and close above $90,000, it would indicate buyers at this level are overwhelmed and lead to a continued decline, with the price potentially dropping below $85,000. BTC must recapture $90,000 to maintain its trading range and avoid a significant bearish turn. However, indicators don’t make for pretty reading. The RSI has plunged to 30, indicating extreme bearish sentiment. The MACD has also flipped to bearish, indicating a further downtrend unless BTC recaptures $100,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has been decimated in the latest downturn to hit the crypto market since Donald Trump became president. The world’s second-largest cryptocurrency is down nearly 13%, trading below $2,400 at $2,372. ETH has seen a bearish start to the week, with Monday registering a drop of almost 11%. Data from Coinglass has shown that crypto liquidations have surged to nearly $700 million over the past 24 hours. ETH and BTC led the losses with around $147 million and $143 million liquidated respectively.
Despite its recent bearishness, ETH started the previous week on a positive note, rising to an intraday high of $2,850 before settling at $2,745, ultimately registering an increase of just over 3%. The price fell on Thursday, dropping nearly 3% and settling at $2,671. Buyers returned to the market on Wednesday as ETH rose 1.67% and settled at $2,716. The price went above the 20-day SMA on Thursday after a marginal increase, settling at $2,739. However, buyers lost momentum on Friday after reaching an intraday high of $2,845. As a result, ETH dropped nearly 3%, slipping below the 20-day SMA and settling at $2,663.
Source: TradingView
ETH recovered over the weekend, rising nearly 4% on Saturday to move past the 20-day SMA and settle at $2,766. Buyers retained control on Sunday, and ETH registered an increase of almost 2% to cross $2,800 and settle at $2,821. However, sentiment changed on Monday, and ETH plummeted nearly 11%, slipping below the 20-day SMA and settling at $2,500. The current session sees ETH down over 4% and trading just above the $2,400 level. If ETH continues to decline, it could drop to $2,200 or $2,000. ETH must reclaim $2,500 to prevent a further downtrend. The RSI has dropped to 33, while the MACD indicates a substantial decline in bullish sentiment.
Solana (SOL) Price Analysis
Solana (SOL) crashed below $150 on Monday, its lowest level since November 6, as its decentralized exchange volume, active users, and revenue crashed. The decline has been amplified thanks to Donald Trump confirming tariffs against Canada and Mexico will proceed as planned, sending markets into the red. Solana is also facing significant challenges as popular meme coins in its ecosystem have shed billions in value. As a result, active users have dropped to 87 million, the lowest level since October 7. The blockchain’s revenue has also fallen below $1 million a day, with the project making just $978,000 on February 14, down from a peak of $44 million.
SOL has been trading downwards since mid-January, and dipped below the 200-day SMA last Monday, dropping nearly 6% to $177. The price continued to drop on Tuesday, falling 4.66% to $169, but not before hitting an intraday low of $160. SOL registered a marginal decline on Wednesday before recovering over 4% on Thursday to move past $170 and settle at $176. However, the price was back in the red on Friday, dropping 4.07% to slip below $170 and settle at $168.
Source: TradingView
SOL recovered on Saturday as it rose nearly 2% and settled at $172 before dropping 2.40% on Sunday to end the weekend on a bearish note at $168. Bearish sentiment intensified on Monday as SOL plunged over 15%, falling below the $160 support level and settling at $142. SOL has declined during the current session and is down over 2%, trading at $138. Indicators suggest a further decline for SOL, with the RSI down to 24. The MACD also indicates a growing bearish sentiment. SOL must reclaim $140 to prevent a further decline. If sellers retain control, SOL could drop to $120.
Chainlink (LINK) Price Analysis
Chainlink (LINK) registered a substantial increase last Monday, rising to an intraday high of $19.79 before settling at $19.11. However, the price fell on Tuesday, dropping nearly 7% to $17.85, a level where it found support. As a result, LINK registered a marginal increase on Wednesday and rose almost 2% on Thursday to settle at $18.30. Buyers lost momentum after reaching an intraday high of $19.05 on Friday. As a result, sellers took over and drove LINK down nearly 5% as it went below a key support level and settled at $17.41.
Source: TradingView
The price recovered on Saturday, rising nearly 2% to $17.75 before dropping almost 1% on Sunday to end the weekend at 17.61. Bearish sentiment intensified on Monday as LINK plummeted over 13%, falling below key support levels and the 200-day SMA to $15.26. Sellers have retained control during the current session, with the price down over 4% and trading at $14.62.
Litecoin (LTC) Price Analysis
Litecoin (LTC) has witnessed considerable volatility since last week as it struggles to move past $140. LTC dropped nearly 3% last Monday as it started the week on a bearish note. However, it recovered on Tuesday, rising just over 6% and settling at $129. Buyers retained control on Wednesday as LTC rose to an intraday high of $139. It could not stay at this level and dropped to $134, ultimately registering an increase of nearly 4%. However, sentiment changed on Thursday as LTC fell to an intraday low of $126 before settling at $130, a drop of almost 3%. LTC encountered volatility on Friday, rising to an intraday high of $140 before dropping just over 2% to slip below $130 and settle at $128.
Source: TradingView
Sellers retained control on Saturday as the price fell nearly 2% to $125 before recovering on Sunday to register an increase of 3.05% and settle at $129. Bearish sentiment intensified on Monday as LTC plunged nearly 12% to slip below the 20 and 50-day SMAs and settle at $114. The current session sees LTC down just over 4% and trading at $110. If sellers retain control, LTC could dip to $100, a level buyers are expected to defend. Buyers will look to regain control and push the price back above the 20 and 50-day SMAs. However, with the MACD bearish, LTC could be in for a further decline over the next few sessions.
Near Protocol (NEAR) Price Analysis
Near Protocol (NEAR) is struggling to move past the 20-day SMA, with the price starting the current week firmly in the red. NEAR began the previous week on a bearish note, dropping nearly 5% on Monday and 3.48% on Tuesday to settle at $3.13. The price registered a marginal increase on Wednesday before rising almost 10% on Thursday to move past the 20-day SMA and settle at $3.47. However, NEAR was back in the red on Friday, dropping nearly 5% to go below the 20-day SMA and settle at $3.30.
Source: TradingView
NEAR recovered on Saturday, rising just over 5% to move above the 20-day SMA and settle at $3.47, but not before reaching an intraday high of $3.64. However, it lost momentum on Sunday and registered a drop of 1.22% to end the weekend on a bearish note at $3.43. Bearish sentiment intensified on Monday as NEAR plunged nearly 11% to slip below the 20-day SMA and settle at $3.06. The current session sees the price down almost 6%, trading at $2.88 after losing the $3 level.
Aptos (APT) Price Analysis
Aptos (ATP) registered a sharp drop of over 5% on Tuesday, falling to an intraday low of $5.34 before settling at $5.62. However, it recovered the following day, registering an increase of just over 12% to move past the 20-day SMA and settle at $6.30. APT surged to an intraday high of $7.06 on Thursday. It lost momentum after reaching this level and dropped to $6.31, ultimately registering a marginal decline. Sellers retained control on Friday as the price fell just over 5% to slip below the 20-day SMA and $6 to settle at $5.98.
Source: TradingView
Despite the bearish pressure, APT recovered over the weekend, rising nearly 1% to move past the 20-day SMA and reclaim $6 to settle at $6.02. Buyers retained control on Sunday, pushing the price up 2% to $6.12. However, APT collapsed on Monday, falling almost 12% to go below the 20-day SMA and a key support level and settle at $5.41. The current session sees sellers retain control, with the price down just over 3% and trading at $5.21.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.