What caused this sharp decline? U.S. President Donald Trump’s additional tariffs on Mexico and Canada created significant market uncertainty. The impact of trade wars on the crypto market led investors to panic sell, and XRP’s price movement was a clear reflection of this development.

XRP’s Technical Levels: Critical Points!

The recent crash and recovery have made key levels in the XRP chart more evident:

• Support Level: $2.25
• Resistance Level: $2.72

According to the chart analysis, it is crucial for XRP to hold the $2.25 level. If it drops below this level, a further decline to $1.70 may occur. However, if XRP surpasses the $2.72 resistance level, a strong recovery could begin!

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Other Coins in the “Made in USA” Category Also Took a Big Hit!

Not just XRP—other major projects in CoinMarketCap’s “Made in USA” category also suffered heavy losses!

• Solana (SOL): Lost 6.90% in the last 24 hours, dropping to $198.37.
• Dogecoin (DOGE): Fell 13.89%, down to $0.2568.
• Cardano (ADA): Declined 18.09%, reaching $0.7191.
• Avalanche (AVAX): Plummeted 17.01%, settling at $25.72.

Most of these cryptocurrencies experienced major losses between 15% and 23% over the past week. This indicates that American-based projects have been subjected to panic selling by investors, reflecting growing concerns in the overall market.

Can XRP Return to Its Previous Levels?

The recent developments have divided cryptocurrency investors. Bears aim to push prices lower under the pressure of trade wars, while bulls believe that maintaining technical support levels could initiate another upward movement. XRP’s ability to hold $2.35 will be the most critical factor in determining its direction in the coming days!

XRP and American-based cryptocurrencies have experienced a severe shake-up, but the recovery process has begun rapidly. Future price movements will shape investors’ strategies! Stay tuned for updates!

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post American-Based Coins Take a Big Hit! XRP Crash and Recovery! appeared first on Coin Engineer.

When Trump began his presidency in 2017, he took a firm stance against trade partners with the aim of reducing the U.S. trade deficit and boosting American manufacturing. His policies, particularly those targeting China, led to a series of tariffs and trade barriers that began to affect the global economy. This process marked the first significant phase of the trade wars, which were expected to have long-term effects.

The Beginning of Trump’s Trade Wars

The most prominent feature of the trade wars was the high tariffs imposed by the Trump administration on China. Trump considered China’s trade practices “unfair” and harmful to the U.S. economy. As a result, in 2018, high tariffs were placed on products imported from China. For example, tariffs on products like steel and aluminum were raised up to 25%. In retaliation, China imposed similar tariffs on U.S. products. These reciprocal tariffs shook the global trade balances and caused disruptions in supply chains worldwide.

China and Other Countries’ Responses

China escalated the trade war in response to these moves by imposing tariffs on key U.S. exports, such as soybeans, cars, and aircraft. In retaliation to Trump’s aggressive trade policies, China made these counteractions on the international stage. However, the trade war did not just affect the U.S. and China; it impacted many other countries around the world as well. Notably, trade partners like Canada protested the tariff increases imposed by the U.S. and took countermeasures in return.

The 2024 Election and Trump’s Revival of the Trade War

After winning the 2024 presidential election, Trump reignited the trade war and further solidified his tough stance on global trade relations. Following the election, he imposed new tariffs on goods imported from trade partners such as China, Canada, and Mexico.

A 25% tariff was applied to goods from Canada and Mexico, while a 10% tariff was imposed on goods from China. This move caused the trade war to intensify once again, leaving global trade in a state of uncertainty.

With these actions, Trump aimed to narrow the U.S. trade deficit further and stimulate American manufacturing. However, this policy disrupted global supply chains, causing economic ripples in other countries as well.

Reactions and Retaliations from Other Countries

In response to Trump’s new measures in 2024, countries like China, Canada, and Mexico reacted to the newly imposed tariffs. China, in particular, retaliated by placing new tariffs on U.S. products. Additionally, the European Union was contemplating a counteraction to Trump’s escalated trade war. Canada and Mexico, similarly, increased their tariffs on U.S. goods in retaliation.

The AI War: A New Front in Global Trade

Trump’s trade wars extended beyond traditional trade to significantly impact the field of artificial intelligence (AI). As the U.S. competed with China over AI technologies, new platforms like DeepSeek were launched, shaping the future of global trade. DeepSeek developed a low-cost technology capable of competing with giants like OpenAI and Google, threatening Nvidia’s dominance.

DeepSeek‘s success caused Nvidia’s stock to drop by 17%. Furthermore, this development also impacted the energy sector, as more efficient AI technologies reduced energy consumption, leading to a slowdown in demand within the sector.

Trump‘s post-election trade decisions further fueled this AI war. New tariffs on China and pressures on tech companies created tension in global trade and digital warfare. These developments also affected financial markets and the cryptocurrency sector, leading to major shifts in investment strategies and global markets.

Impact of the Trade War on Markets

Trump’s aggressive tariffs and retaliations not only impacted global trade but also financial markets. The cryptocurrency market, in particular, saw significant losses due to the effects of the trade war. Bitcoin (BTC) and Ethereum (ETH), for example, lost considerable value, with Bitcoin dropping from $106,000 to below $90,000, marking a 15.09% decline. This loss triggered panic among investors, leading to significant liquidations in the crypto markets. Furthermore, the economic uncertainty caused by the trade wars led to a contraction in global trade and a slowdown in economic growth.

After Trump’s victory in 2024, the trade policies he implemented reshaped global trade. Reactions and counter-retaliations from trade partners like China, Canada, and Mexico escalated the trade war. The effects of the trade war were not limited to traditional markets but also impacted digital assets such as cryptocurrencies.

Trump’s trade war deeply affected global trade and financial markets, raising economic uncertainty and causing disruptions in global supply chains.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates.

The post Trump’s Trade Wars: Storms in the Global Economy appeared first on Coin Engineer.

Bitcoin (BTC): Sharp Drop from 106,000$ to 91,000$!

Bitcoin had recently been in a strong uptrend. However, due to trade war fears, it suffered a nearly 15% drop from 106,000$ to 91,000$! Technical analysis indicates key levels following this decline:

• Support Level: 91,221$
• Resistance Level: 98,504$

The BTC/USDT chart suggests that investors are trying to hold the 90,000$ level, but selling pressure remains strong. If 91,221$ breaks, Bitcoin could decline further to 89,472$. However, if 98,504$ is surpassed, a recovery is possible.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Ethereum (ETH): Drop from 3,200$ to 2,100$!

Ethereum followed Bitcoin, experiencing a sharp 37.5% drop from 3,200$ to 2,100$! This steep decline has worried investors, with chart analysis revealing crucial levels:

• Support Level: 2,455$
• Resistance Level: 3,026$

The ETH/BTC chart shows that Ethereum failed to break resistance levels, leading to deeper retracement. If 2,455$ does not hold, ETH could drop further to 2,000$. However, for a rebound, it must surpass 3,026$.

Bears Take Control of the Market!

According to recent chart analysis, bears have gained dominance, causing heavy losses for investors. The primary factor behind this downturn is the U.S. trade war escalation and additional tariffs, increasing market pressure. However, BTC and ETH holding their support levels raises the possibility of a potential recovery.

Ultimately, the crypto market is at a crucial turning point! Chart movements in the coming days will determine its direction. Investors should remain cautious and closely monitor market data.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Major Crypto Market Volatility: Critical Levels for BTC and ETH! appeared first on Coin Engineer.

Bitcoin highlighted its growing sensitivity to macroeconomic developments, reaching a local bottom just above $91,000. On February 3, at 02:00 UTC, Bitcoin dropped to $91,530, marking its lowest level in over three weeks, before recovering to $95,306 by 08:15 UTC.

BTC/USD, 1-Day Chart

Bitcoin’s decline came after U.S. President Donald Trump signed an executive order on February 1 to impose additional tariffs on imports from China, Canada, and Mexico.

Ryan Lee, Head Analyst at Bitget Research, noted that Trump’s tariffs escalated global trade war concerns, shaking investor confidence and exerting downward pressure on Bitcoin.

Lee explained that while Bitcoin has traditionally been seen as a hedge against traditional market volatility, recent price movements highlight its increasing sensitivity to global economic developments. According to him, geopolitical tensions and government policies are now playing a more decisive role in shaping the cryptocurrency market.

The analyst added that Canada, Mexico, and China’s retaliatory measures further heightened investor concerns, triggering a flight from risky assets, including cryptocurrencies.

Bitcoin’s price movement aligns with previous predictions from analysts, who forecast a deeper correction following a “local peak” above $110,000 in January.

GMI Total Liquidity Index, Bitcoin (RHS)

Bitcoin Continues to Be Sensitive to Macroeconomic Developments

Raoul Pal, Founder and CEO of Global Macro Investor, highlighted Bitcoin’s correlation with the global liquidity index, suggesting that Bitcoin could fall below $70,000 in February before a temporary peak in liquidity.

Despite being viewed as a hedge against volatility in traditional finance markets, Bitcoin remains sensitive to macroeconomic developments.

However, Alvin Kan, COO of Bitget Wallet, believes that Bitcoin has recovery potential compared to traditional markets. He stated, “While the sell-off reflects a typical risk-off reaction to macroeconomic shocks, Bitcoin’s safe-haven perception still leaves room for a rebound, particularly as digital assets are increasingly adopted as hedges against inflation and currency devaluation.”

Short-term concerns related to the $36 trillion U.S. debt ceiling persist, but industry experts remain optimistic about Bitcoin’s outlook for the rest of the year. Analysts predict Bitcoin could rise above $160,000 to $180,000 during the remainder of the 2025 market cycle.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Drops to $91.5K Amid Trade Tension Concerns appeared first on Coin Engineer.

Trump’s Tariffs and Their Market Impact

According to a February 1 statement from the White House, Trump has implemented a 25% additional tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. Energy resources from Canada will face a lower 10% tariff.

Trump justified his decision by stating that it was necessary to “hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”

However, market sentiment suggests that these tariffs could increase inflation and lead to higher interest rates, pushing investors away from riskier assets like crypto and towards traditional investments such as bonds and fixed deposits.

Countries Respond Quickly!

In response to Trump’s decision:

• Canadian Prime Minister Justin Trudeau announced a 25% tariff on $106.5 billion worth of U.S. goods.
• China’s Ministry of Commerce stated it would file a complaint with the World Trade Organization (WTO) and take corresponding countermeasures.
• Mexican President Claudia Sheinbaum said on X that she has instructed the Secretary of Economy to “implement Plan B,” which includes “tariff and non-tariff measures in defense of Mexico’s interests.”

Shortly after these retaliations, Bitcoin (BTC) fell below the psychological $100,000 level, hitting $99,111 for the first time since January 27. As of publication, Bitcoin is trading at $99,540.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

According to CoinGlass data, $22.70 million in long positions were liquidated in the four hours leading up to publication.

Crypto Community Divided Over Market Impact

The crypto industry is split on the impact of Trump’s tariffs on the broader market.

Crypto Capital Venture founder Dan Gambardello dismissed the panic, saying, “I cannot believe there’s a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle.”

Bitwise Invest’s head of alpha strategies, Jeff Park, argued that in the long run, “a sustained tariff war will be amazing for Bitcoin.”

However, Cinneamhain Ventures partner Adam Cochran had a different view, stating that Bitcoin is not separated enough from global markets and now trades like triple-leveraged tech.

“An economic squeeze of this scale just means pain all around, and we should be okay with denouncing that,” Cochran said.

Bitcoin’s recent drop once again highlights its connection to global economic policies. As the markets closely watch Trump’s trade decisions and potential new sanctions, Bitcoin and other crypto assets face continued uncertainty.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Falls Below $100K: Trump’s Tariffs Shake the Market! appeared first on Coin Engineer.