the crypto global market has crashed in last 24 hours. why?
Fere Pro Created at: 03 February, 2025 09:17 AM
The global cryptocurrency market has experienced a significant crash in the last 24 hours, with a notable decline in market capitalization and trading volume. Here are the key details:
Market Overview
- Current Market Cap: Approximately $3.3 trillion, down from around $3.5 trillion.
- 24-Hour Trading Volume: Increased to about $380 billion, indicating heightened trading activity amid the downturn.
Reasons for the Crash
- Tariffs Imposed by the U.S.: Recent tariffs imposed by the U.S. on Canada and Mexico have raised concerns about a potential trade war, leading to negative sentiment in the markets. This has contributed to a broader sell-off in cryptocurrencies.
- Liquidations: Over $2.2 billion in crypto liquidations occurred, particularly affecting major tokens like XRP and Dogecoin, which saw declines of over 25%.
- Market Sentiment: Analysts have noted that the market is reacting more strongly to negative news than to positive developments, indicating a fragile sentiment among investors.
Notable News Articles
- XRP and Dogecoin Plunge: XRP and Dogecoin have both seen significant price drops, reversing gains made since December. Read more here.
- Solana Meme Coins Struggle: Solana's meme coins, WIF and BONK, have hit multi-month lows, reflecting the broader downturn in the sector. Read more here.
- Market Reaction to Economic Policies: The market's downturn has been exacerbated by macroeconomic uncertainties, including recent tariff announcements by President Trump. Read more here.
Summary
The combination of geopolitical tensions, significant liquidations, and negative market sentiment has led to a sharp decline in the cryptocurrency market over the past 24 hours. Investors are advised to stay informed and exercise caution in the current volatile environment.