The crypto market crashed hard today. After Trumps’ election, expectations were too high. So, Is the bull run over or just getting started?
President Trump implemented new tariff taxes for imported goods. He hit Canada, Mexico, and China with this. As a result, the crypto market lost $12.7 billion in market cap PER HOUR since this trade war started. That was Friday afternoon. That’s a total of $760 billion during the last 60 hours. So, is this bull run over or just getting started?
Let’s take a look at three events that played a role in this crypto crash.
It all started with Deepseek. That saw the stock market crash hard. However, the effect on the crypto market wasn’t as bad as with the stock market. NVIDIA’s stock even crashed by 17% or almost $600 billion. This marked the greatest single-day market-cap loss in a day in US history. In crypto, the AI sector took a hit.
Marty Party’s X account has been following some major CEXes recently. He pointed out that they manipulate the market with market makers. On his timeline, he backs this up with proof of onchain transactions.
For example, he shows that Binance sent $100 million to Wintermute. In turn, Wintermute sells this on Binance, to force capitulation. Afterward, Binance buys back at a lower price. Here’s another great example of how Binance and Wintermute played this with game with $SOL.
And don’t be mistaken, it’s not only Binance, other big exchanges like Coinbase play the same game. These are only some of the samples he provides. You can find more samples like this on his timeline.
In the end, this is as good of a fire sale as they come. And yes, I understand that you’re tired of hearing this by now. Make sure to not get shaken out now. Only buy spot, don’t use leverage now. In a moment, I will discuss good projects to buy during this dip. So, keep watching until the end.
Another big reason for this crash is the tariff war that President Trump started. He imposed a 25% tariff on Canada and Mexico and a 10% tariff on China. On a high level, you can compare these tariffs to tax. For example, if last week something cost $100, now, with the new tariff, it costs $125. These tariffs will start tomorrow and affect around 43% of all US imports soon.
40% of all US imports are from Canada, Mexico, and China. So, these goods will now cost 25% more. This includes, for instance, $80 billion in auto industry imports per year. The new tariff will add around $3,000 to the price of a new car in the US. Currently, the US sells 16 million cars per year.
Crude oil from Canada ($97 billion p/y) and phones from China ($55 million p/y) are also impacted. On the other hand, it strengthened the US dollar. That’s because there’s now less demand for foreign currencies.
Trump has a bit of an edge. Let me show you. The US imports 14% from Canada and 15% from Mexico. However, both countries import around 80% from the US. Canada also raised its tariff with the US to 25%. This didn’t prevent the Canadian dollar from dumping.
China and Mexico are planning countermeasures; however, no details are available yet. Nonetheless, China seemed prepared for this trade war. Only 15% of their annual exports are to the US.
Chinese New Year is in full swing. Last week, we celebrated the Year of the Snake. It ends with the Lantern Festival. This will be on 12th February. It’s also the largest human migration on Earth. Each year, around 2 billion people travel during this period.
In general, this is a good time to buy Bitcoin. That’s because Chinese people travel back to their small villages and towns. They talk about Bitcoin to their relatives and close friends.
As a result, more people start buying it. But keep in mind that during the travel period, Chinese people don’t trade as much. This could start again coming 12th February. This may ignite the bull run again.
Good coins to buy now before the bull run continues are ‘Made in USA‘ coins. Five out of these six coins are a sample of that.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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The trade war is LIVE: New tariffs from President Trump are set to impact $1.3 TRILLION worth of US trade. The US stock market has lost over -$1.5 TRILLION of market cap with ~43% of all US imports soon subject to tariffs. What does this mean? Let us explain. (a thread)
These tariffs will have huge implications on Canada and Mexico in particular. Imports from Canada and Mexico only reflect ~14% and 15% of US imports, respectively. On the other hand, they reflect nearly 80% of exports from both Canada and Mexico. Trade is clearly lopsided.
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