Crypto market volatility Financial News

US President Donald Trump added uncertainty to looming tariffs on Canada and Mexico by suggesting they could take effect on April 2, extending the deadline by a month. However, a White House official later clarified that the previous March 2 deadline remained in place «as of this moment,» adding to market volatility.

Bitcoin and other major cryptocurrencies slumped on Tuesday as investor optimism over a proposed US Crypto Strategic Reserve faded. The decline also came amid escalating trade tensions, with US President Donald Trump confirming tariffs on Canada, Mexico, and China would take effect within hours. Investors turned risk-averse after Trump announced that 25% tariffs on Canada and Mexico, along with a doubling of China levies to 20%, would be implemented from 05:01 GMT on Tuesday. Market concerns were further fueled by signs of economic strain, with U.S. factory gate prices hitting a nearly three-year high and supply chain disruptions intensifying.

The crash immediately wiped out tens of thousands of dollars from his savings.

Bitcoin (BTC) experienced a decline, trading below $103,000 on Saturday, February 1, 2025, amid global market volatility spurred by recent U.S. tariff announcements. As of 10:16 am IST, Bitcoin was priced at $102,441, marking a 1.7% decrease over the past 24 hours. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, saw a 2.4% increase, trading at $3,302 during the same period.

Melania Coin saw a sharp over 60% decline just one day after its launch, trading at $4.17 as of 12:06 pm IST on Tuesday. The $MELANIA coin, launched on January 20, 2025, a day before Melania Trump's husband's inauguration, quickly gained traction, reaching a market cap of $2 billion within hours. However, the coin faced significant volatility, with its price dropping over 74% from a high of $13.73 to $3.46. By 12:06 pm IST, it was trading at $4.17, a 64.2% drop in the past 24 hours.

To curb the inflationary pressure, central banks are raising interest rates, affecting the returns on many asset classes globally. Several assets are undergoing market volatility, including the S&P 500 Index, which recently fell into bear territory as it dropped by over 20% from its recent high. Bonds have suffered, too, and with the looming signs of global recession, crypto markets have also witnessed a downfall. Investors are worried across all asset classes as ROIs have significantly dropped, but the impact is higher on crypto due to the volatile nature of the market. Investors’ confidence has taken a back seat as Bitcoin’s price has plummeted substantially since the beginning of the year, and investors are worried about their future returns. However, it should be noted that such high volatility is not foreign to this asset class, as similar cycles of bull and bear in the market have been witnessed historically. Still, crypto has eventually emerged to outperform any other asset class.

Ultimate Fighting Championship (UFC) fighter Luana Pinheiro announced that she has partnered with Bitwage to receive her salary in Bitcoin (BTC). Pinheiro said she continues to receive fiat payments from her sponsors but converts them to BTC immediately through Bitwage. 

The Bank of England has called for “enhanced” regulations of crypto to address potential risk to the country’s financial stability amid the market capitalization dropping more than $2 billion.