The Crypto Market’s Major Decline

The crypto market has recently witnessed an enormous hit. As per Satoshi Club, a more than twenty percent plunge has taken place in the wider crypto sector and has gone through a more than 20% decline over the past weeks. As a result of this, the crypto market’s cumulative market capitalization has plunged from $3.6 trillion to $2.8 trillion.

> Bitcoin and the broader crypto market have fallen over 20%, from $3.6T to $2.8T, as fears of a trade war grow.
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> Tariffs on Canada, Mexico, and China were announced on Feb. 1, with exemptions briefly easing concerns before being reversed.
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> Late February sell-off worsened amid the… pic.twitter.com/8KQiCsXAl1
> — Satoshi Club (@esatoshiclub) March 9, 2025

This sheer dip has triggered significant concerns within the crypto community. Additionally, this slump is also likely to influence investor sentiment to a great extent. Satoshi Club, a crypto analytical platform, has shared the facts and figures related to the crypto market through its official X account, discussing the factors behind the decline.

Crypto Market Hit by 20% Dip from $3.6 Trillion to $2.8 Trillion Amid Rising Trade War Fears

Satoshi Club’s analysis has displayed a noteworthy 20% decrease in the crypto market, starting from February 1st. On that date, the U.S. government unveiled a new wave of tariffs aimed at key trading collaborators, including China, Mexico, and Canada.

At first, the markets experienced a provisional relief considering the exemptions. Nonetheless, the respective exemptions were shortly reversed, rekindling apprehensions about the influence of trade pressure on the global economy.

The second half of the past month saw intensified crypto sell-offs due to several negative developments. A key factor among them was the huge Bybit exploit, which shook investor confidence, triggering concerns about broader vulnerabilities. Moreover, the fears concerning exclusive tariffs from the EU jurisdiction worsened economic uncertainty, leading to de-risking by retail and institutional investors.

Inflation and Fed Uncertainty Intensify Market Pressure

According to Satoshi Club, the crypto downturn was further exaggerated by an additional ten percent tariff on Chinese goods. This escalated the tensions existing between the two largest economies in the world. Along with this, increasing inflation and uncertainty surrounding the upcoming monetary policy of the Federal Reserve have also contributed to this decline.