Altcoins Plummet: Is the Bull Market Finished? Top Cryptocurrencies to Consider Now
Donald Trump’s expanding tariff strategy has triggered another plunge in the crypto market, with altcoins suffering more severely than Bitcoin.
Bitcoin's value dipped to $91.2k, hitting a crucial support point, but has since rebounded to $95.5k. Despite this recovery, traders are viewing the climb to $95k as a temporary uptick, particularly as the typically bearish New York market is about to open.
This $2.3 billion liquidation represents the largest 24-hour loss in crypto history, surpassing both the COVID downturn and the FTX debacle.
An increasing number of experts are questioning if the crypto bull market has reached its end.
Trump’s Tariff-Induced Crash Draws Parallels with 1930 Depression - Altcoins Take a Hit
Donald Trump’s growing tariff policies have sparked a broader financial downturn, which in turn has led to a crypto market crash. After announcing 25% tariffs on both Canada and Mexico, along with an additional 10% on China, Trump is now focusing on a trade conflict with the European Union.
The countries mentioned have vowed to impose their own retaliatory tariffs, fueling fears of rising inflation. Bloomberg analysts suggest these tariffs could cut US GDP growth by 1.2% and add 0.7% to the core PCE, potentially leading to stagflation.
Trump claimed that the resulting “pain” would be worth it, a controversial statement that reminded crypto traders of Jerome Powell’s similar remarks about future hardships.
Trump’s tariffs have also been likened to the 1930 Smoot-Hawley tariff plan, which is believed to have worsened the effects of the 1929 Great Depression.
Am I the only one out there who knows that the Smoot-Hawley tariff was the principal trigger for the 1929 stock market crash and the Great Depression?
— Bruce Bartlett (@BruceBartlett) February 2, 2025
Has the Crypto Bull Market Ended?
Speculation about a market peak has intensified after Monday’s crypto slump. However, savvy investors remain vigilant.
For example, Bitcoin managed to maintain the $91.2k level, a crucial support zone.
Chartered Market Technician Aksel Kibar notes that BTC’s current price movement aligns with the consolidation phase that typically follows a breakout from a broadening pattern. This could indicate the possibility of reaching new highs in the coming weeks; however, this outlook is invalidated if BTC falls below the $91.2k mark.
If 91.2K holds the consolidation can end up very similar to what Edwards & Magee featured after the broadening pattern breakouts. https://t.co/0HEfKR0332 pic.twitter.com/2OXV2UVD63
— Aksel Kibar, CMT (@TechCharts) February 3, 2025
Attention is now on Donald Trump’s upcoming meeting with Canadian and Mexican officials on Monday. If Trump signals an end to the tariff disputes, it could lead to a significant recovery in financial markets.
Conversely, if the US President maintains a confrontational stance, it could drain global liquidity, creating a negative environment for risk assets like Bitcoin.
Top Cryptocurrencies to Consider Now?
Investors waiting to buy during the dip should proceed with caution. Purchasing without an alteration in the bearish market structure, known as “knife catching,” often results in added losses.
Instead, savvy investors are turning to low-cap investments and presale tokens, as these tend to be less affected by the broader market trends.
Just yesterday, an early investor in $ELON4AFD turned a $109 investment into $350,000.
$109 to over $350,000 $Elon4afd
— Kakashi (@kkashi_yt) February 2, 2025
Trading bot: https://t.co/QYUjB0vpbU https://t.co/e9NnjfNkX5 pic.twitter.com/uMvb7RG6YR
Similarly, Wall Street Pepe (WEPE) is nearing its $72 million hard cap, adding nearly a million each day to its presale total.
The meme coin’s Pepe The Frog theme, along with a VIP group offering market insights to holders and staking rewards, has caught the attention of wealthy investors.
Given its presale success, experts predict WEPE could become the next billion-dollar meme coin.
Similarly, Solaxy (SOLX) has gained attention from large investors, amassing over $17 million in its ICO.
Solaxy is still in the early stages of its presale and is expected to launch after the resolution of Trump’s trade wars, which is favorable for its potential growth.
As the first major Solana layer-2 solution, its roll-up architecture aims to address SOL’s network congestion issues.
Due to its ambitious goals and low market cap, prominent investors are calling SOLX the next potential 100x crypto.
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