Recently, the cryptocurrency market has experienced a sharp decline alongside major global stock markets, causing increased anxiety among investors. Bitcoin, in particular, has faced a triple whammy of concerns stemming from Trump's tariffs, the Bybit hacking incident, and the liquidation effects of carry trades, hitting a low not seen in over 100 days. Altcoins, including meme coins, have also seen significant drops, indicating a drastic contraction in investor sentiment.
Bitcoin Breaches $80,000 Mark... Altcoins Follow Suit
As of 5:33 PM on February 28th, according to the cryptocurrency market data platform CoinMarketCap, Bitcoin was trading at $78,924.10, down 19.62% from the previous day. This marks the first time in over 100 days that Bitcoin has fallen below the $80,000 mark. Major altcoins such as Ethereum, Ripple, and Solana also plummeted by more than 20%, vividly illustrating the deteriorating investor sentiment.
Meme Coins Face 'Rug Pull' Controversy and SEC Warnings... Investor Sentiment Worsens
Investor sentiment towards meme coins has further deteriorated. Following the "rug pull" controversy involving Argentine President Javier Milei, the U.S. Securities and Exchange Commission (SEC) issued a statement classifying meme coins as closer to "collectibles," delivering a significant shock to the market. Consequently, major meme coins like Dogecoin, Shiba Inu, and Pepe all experienced declines, with OfficialTrump and Libra plunging by 33.13% and 44.98%, respectively.
Expert Analysis: "Combined Factors of Trump's Tariffs, Carry Trade Liquidation, and More"
Experts attribute the recent cryptocurrency market crash to a combination of factors, including the Trump administration's reaffirmed commitment to imposing tariffs, the valuation burden on U.S. Big Tech companies, declining consumer confidence, and signals of economic slowdown. They also point to the liquidation of carry trades, which had been prevalent since the launch of Bitcoin spot ETFs, as a contributing factor to Bitcoin's weakness.
Story (IP) Coin Sees Only Gains... Market Volatility to Watch Next Week
Among the top 50 cryptocurrencies by market capitalization, Story (IP) coin was the only one to see gains. Story experienced a 13.22% increase, reflecting expectations for IP tokenization and the expansion of the NFT market. Experts advise caution regarding market volatility next week, noting that the U.S. tariff implementation and unemployment rate announcements are expected to have a significant impact on the market.
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