Amid the escalating concerns about Trump’s trade wars, Bitcoin and altcoins have experienced a significant correction today, as we have previously discussed. While Bitcoin has declined by 4-5% today, altcoins have suffered even greater losses, with Ethereum (ETH), XRP, Solana (SOL), and BNB Coin (BNB) each witnessing a drop of 10-15%. As a result, Bitcoin dominance has reached a four-year high.
Donald Trump’s Trade War Has a Severe Impact on Bitcoin and Altcoins
The crypto market has started February on a very bearish note, despite historically being the strongest-performing month. BTC/USD 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 24-hour liquidation in the crypto market has surged to $2.29 billion, with long liquidations exceeding $1.91 billion. Well-known crypto market analyst Roman Trading commented:
These are wild times in this range. I must admit, I did not expect to see the lower 90s again, but here we are. With bullish divergences, a stochastic reset, and sitting at the low support area of the range, it would make sense to see a bounce soon.
Roman is among a growing group of analysts expressing optimism that Bitcoin could 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 move will eventually prove beneficial. During a conversation with reporters on Monday, Trump stated:
In the short term, we may experience some pain, and people understand that. But in the long term, the United States has been taken advantage of by nearly every country in the world.
BTC Dominance Hints at an Altcoin Season Ahead?
Turning our attention to altcoins, trader and analyst Skew pointed out the occurrence of “capitulation wicks” as numerous tokens plunged by 20% or more. The altcoin market is currently experiencing a significant decline, with most digital assets falling below their key 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 begins. Crypto analyst Juice on the X platform posted:
BTC.D is exhibiting almost the exact same pattern as it did just before the previous altcoin season started, zoom in and take a look! Two red weekly candles, followed by two small green weekly candles, and then two huge green candles. Look 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 traditional finance outfit is on the verge of bankruptcy. Then the Federal Reserve reluctantly joins team Trump and prints money. And then you better be ready to buy crypto like you have never bought before.”