The cryptocurrency market declined over the weekend, leaving participants worldwide anxious. Bitcoin’s (BTC) price dropped significantly throughout the week, while altcoins largely followed suit due to broader macroeconomic factors. These events have been the primary cause of market volatility. Here’s a quick rundown of CoinGape’s updates from the past week’s cryptocurrency market decline.
Crypto Market Declines Amid Trade War Fears
Against prevailing macroeconomic factors, the cryptocurrency market suffered a heavy loss this week—the world’s market hit the US. President Donald Trump imposed more tariffs on China, Mexico, and Canada, fueling fears of a trade war. Thus, not only did the economy collapse, but the cryptocurrency sector did, with Bitcoin and Altcoin Rally reversing gains. Bitcoin’s price has been as low as $95,000 last week, putting additional pressure on altcoins. Not to mention that the market has still not recovered even though Donald Trump announced a 30-day moratorium on the additional tariffs for Mexico and Canada. Due to the market’s lacmarket’sovery and the impending tariff resumption in 30 days, several traders and investors predict further declines.
Further escalation of the trade war between the USS and its allies may be on the horizon as USS President Donald Trump announced his intention to impose reciprocal penalties next week. However, the bitcoin industry persisted downward despite recent US jobs being cooler than anticipated. Despite market forecasts of 170,000 new nonfarm payrolls in January, the number was 143,000. In addition, the US unemployment rate was 4.1%, which is lower than the 4.1% recorded last month, but for now, the bigger picture of the cryptocurrency market is unclear.
Whale Activity Surge Amid Crypto Market Decline
Concurrently, Bitcoin’s prBitcoin’sby 3% this week, eventually settling around $97K. After a disconcerting 14% decline, the price of ETH ended the week at $2,600. Following suit, the price of XRP soared by more than 14% on the last day, finishing the week below $3. First and foremost, the general decline in Cryptocurrency values reflects the widespread market uncertainty caused by recent macroeconomic events. Whatever the case, it is significant to notice that whale activity in altcoins increased significantly during this time. According to CoinGape, XRP whales purchased 520 million tokens during the latest decline, suggesting significant gains are on the horizon. The recent ETH whale activity also highlighted a purchasing frenzy among investors and dealers worldwide. The present lump has caused meme coins like PEPE and WIF to see a jump in whale accumulations. Meanwhile, market experts are still hopeful about a bullish trend in the future, maybe due to buy-the-dip tactics employed by large-scale investors.
Final Thoughts:
Ongoing macroeconomic issues, such as trade tensions and changing global economic conditions, continue to influence the cryptocurrency market, making it highly volatile significantly. Many traders and investors are worried about the impending trade war, which has led to a recent decline in Bitcoin and altcoin prices and general market pessimism. Nevertheless, the fact that large-scale investors are becoming involved in cryptocurrencies such as XRP and ETH indicates that they view this decline as a chance for future returns. Although the market is uncertain, experts remain cautiously optimistic, hoping for a bullish trend in the future that will be led by strategic buying during the drop. Participants in the market need to be well-informed and flexible since, as always, the future of cryptocurrency is uncertain.
