Crypto Markets Plunge 11% Amid Tariff Uncertainty; Bitcoin's 21-Week Average Signals Bull Market

Crypto Markets Tumble Amid Tariff Uncertainty; 21-Week Moving Average Key Indicator of Bull Market

The crypto market experienced a significant sell-off on February 3, 2025, following the announcement of new tariffs by U.S. President Donald Trump. The total market cap plunged by 11.15% to $3 trillion, with Bitcoin (BTC) and other major cryptocurrencies recording substantial losses. The 24-hour trading volume surged by 174.04% to $291.45 billion as traders scrambled to reposition their holdings.

Bitcoin (BTC) dropped by 6.86% to $92,871.48, with its dominance remaining strong at 61.58%. Ethereum (ETH) suffered the sharpest decline among major altcoins, falling by 20.37% to $2,471.85. Solana (SOL) and XRP also recorded steep declines, losing 8.19% and 24.21%, respectively. The overall altcoin market remained under pressure as Bitcoin's dip dragged down sentiment.

The sell-off was driven by a mix of fresh U.S. tariffs, weak liquidity, and panic selling, wiping over $2 billion from the market in the last 24 hours, according to data from Coinglass. Amid the chaos, Bitcoin price dropped nearly 6% to around $91,200 before bouncing back slightly, but altcoins took an even harder hit.

Liquidation heatmap after President Donald Trump announced tariffs | Source: Coinglass

Ethereum (ETH) tanked 18%, XRP (XRP) was the biggest loser with a 20% drop, and Solana (SOL) fell 8% as the total market cap sank nearly 12% to $3.15 trillion.

Matrixport co-founder Daniel Yan called it “another typical weak Monday,” blaming Asia markets for their knee-jerk reaction to bad news. He highlighted extreme volatility, with Coinbase’s ETH premium — a sign of strong U.S. buying demand — spiking to 6% while the top 100 tokens averaged a 22