The crypto market took a significant hit on Monday, with Bitcoin (BTC) leading the downturn as tensions between the US and EU over tariffs sparked broader macroeconomic uncertainty.
Analysts at Keyrock noted in a recent blog post that the next major market catalyst could be NVIDIA’s earnings on February 25, emphasizing that equity markets are highly sensitive to AI-driven growth expectations. “Given the equity market’s sensitivity to AI-driven growth expectations, guidance will likely have an outsized impact on tech, which Bitcoin has been tracking closely, and broader risk sentiment,” they said.
Market Sentiment Plummets
The Crypto Fear & Greed Index has plummeted to 5, deep in the “extreme fear” territory, indicating that investor sentiment is at one of its lowest points in recent weeks. This sentiment is further exacerbated by the ongoing trade disputes and macroeconomic challenges.
Top Performers and Losers
Among the top 100 assets by market cap, POL (formerly MATIC) led the gainers with a 3.3% increase, followed by tokenized gold assets Tether Gold and PAX Gold, both up about 1.4%. On the downside, tokens from two of the largest decentralized trading protocols, Hyperliquid (HYPE) and Pumpfun (PUMP), saw significant losses, down 8.2% and 9% respectively. Commentators noted that the price pressure came after a tweet from ZachXBT hinting at an upcoming investigation into “one of crypto’s most profitable businesses.”
Liquidations and ETF Outflows
Data from CoinGlass reveals that nearly 139,000 traders were liquidated over the past 24 hours, with total losses amounting to around $503.1 million. Bitcoin accounted for $231.3 million, Ethereum for $127 million, and other altcoins for $33.78 million. Long positions made up the majority of the liquidations, totaling $426.5 million, while shorts accounted for $76.5 million.
Spot Bitcoin exchange-traded funds (ETFs) recorded $315.86 million in outflows over the past week, while spot Ethereum ETFs lost a net $123.37 million, according to SoSoValue data.
Macro Conditions and Tariffs
On the macro side, the European Commission urged the US to adhere to last year’s trade deal after the Supreme Court struck down Trump’s emergency tariffs. In response, Trump imposed temporary global tariffs, initially at 10% and later increased to 15%, creating an unpredictable trade environment. U.S. Treasury yields remained relatively stable, with the 10-year yield dipping slightly to 4.077%, the 30-year yield slipping to 4.723%, and the 2-year yield nudging up to 3.482%.
As the crypto market grapples with these macroeconomic headwinds, investors are bracing for further volatility. The upcoming NVIDIA earnings report and the ongoing trade disputes between the US and EU will likely continue to influence market sentiment in the coming weeks.
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