The crypto market is suffering "pain" after President Trump announced an additional 10% tariff on imports from China, raising the total tariff to 20%.
The crypto market is "turning red" after Trump imposes an additional 10% tariff on China. Image: The Economic Times
The new tax policy is "sinking in"
The global financial market, including crypto, is under immense pressure after the announcement by President Donald Trump to increase import tariffs on Chinese goods.
According to the plan, from March 04, the import tariff on Chinese goods entering the US will increase by an additional 10%, bringing the total tariff to 20%. This is the next step after the 10% tariff imposed on February 04.
At the same time, after a month of truce, Trump still maintains the 25% tariffon imports from the two neighboring countries Mexico and Canada, citing that these countries have not effectively controlled the situation of smuggling and illegal immigration into the US.
The trade policy is escalating trade tensions, affecting the global supply chain and pushing the financial market into an unstable state. Investors are starting to reassess risks, leading to a negative sentiment spreading across the stock and crypto markets.
Red dominates the crypto market
Under the pressure of the new tax policy, the crypto market is "tasting the pain". Over the past month, the selling trend has not stopped as investors seek to avoid risks. The total market capitalization has "slipped" to the lowest level in the past 3 years.
Price fluctuations of the top 100 market capitalization Bit coins, screenshot from CryptoBubbles at 11:30 AM on 28/02/2025
Bit coin has "plunged" below $80,000, dropping to $79,532, the lowest level since November 2024. The king coin has dropped 5% in the last 24 hours and is trading around $80,235.
Bit coin price fluctuations in the last 24 hours, screenshot from CoinGecko at 09:40 AM on 28/02/2025
Ethereum also shares the same fate, with an 8.5% drop in the day and a 22% drop in the month. This second-largest coin is currently trading at $2,146.
Ethereum price fluctuations in the last 24 hours, screenshot from CoinGecko at 09:40 AM on 28/02/2025
In the context of a weakening market, only Aptos is a bright spot yesterday. The reason comes from the news that Bitwise Investment Fund has filed for an Aptos spot ETF. Previously, APT had dropped about 38% in the past month due to the general market pressure. However, the ETF news has helped APT recover strongly, currently trading around $5.83.
Aptos price fluctuations in the last 24 hours, screenshot from CoinGecko at 09:40 AM on 28/02/2025
Tokens related to Artificial Intelligence (AI) have mixed movements even as Nvidia reported Q4 results far exceeding expectations and opened up ambitious growth prospects.
Bit coin spot ETFs are also under the strongest capital outflow pressure in history, with 11 major funds recording outflows of up to $2.5 billion. This is a significant reversal from the upward trend these funds had seen in the previous weeks.
Statistics on inflow/outflow of Bit coin ETFs. Source: Farside Investors (28/02/2025)
Bit coin's Fear and Greed Index is at 16 - "extremely fearful", indicating that negative sentiment is dominating investors.
Crypto market Fear and Greed Index. Source: alternative.me (28/02/2025)
According to data from CoinGlass, the Derivative market recorded $672 million in liquidated orders in the last 24 hours.
Liquidation data on the Derivative market, screenshot from CoinGlass at 09:45 AM on 28/02/2025
In general, the crypto market is facing many challenges as Bit coin and other major assets plummet in the face of the impact from Trump's new tax policy and concerns about macroeconomic conditions. Investors need to closely monitor global political and economic developments to have a reasonable investment strategy in the coming time.
Compiled by Coin68
