On February 19, Bitcoin $78,915 and leading altcoins experienced a significant decline. As market volatility surged, macroeconomic uncertainties and rising import tariff concerns in the U.S. influenced investors’ risk perceptions. The Federal Reserve’s strict stance on interest rate policies triggered fluctuations in the cryptocurrency market. Consequently, Bitcoin fell to the level of $93,000, while Ethereum
$1,499 and Solana
$110 also recorded losses. The movements in the altcoin market led to a wave of liquidations.
Macroeconomic Factors and Market Uncertainties
A decrease in global market risk appetite has also reflected in the cryptocurrency space. Former U.S. President Donald Trump’s comments regarding potential new import tariffs instilled fear among investors. According to CoinGape reports, speculation about trade wars created pressure across the market.
The Federal Reserve has signaled a continuation of its tight monetary policy. These announcements resulted in an increase in bond yields and strengthened demand for the dollar. There has been a noticeable decline in interest in riskier assets, while selling pressure in Bitcoin and the altcoin market intensified. The contraction of liquidity has heightened risks, particularly for investors engaged in leveraged trading.
Sharp Decline in Bitcoin and Altcoins
Bitcoin lost 1% of its value during the day, dropping to $93,000. Popular altcoins such as Ethereum, Solana, and BNB recorded similar percentage losses. XRP was notably affected, showing a decline of 4%.
However, some altcoins demonstrated resistance to the downturn. Projects like Maker, Berachain, and Litecoin managed to remain in the green. This activity increased investors’ tendencies to diversify their portfolios. Despite the high levels of volatility, the upward movements in some tokens led to interpretations that the market has not fully entered a bull phase.
Experts from the technology and finance sectors indicate that volatility in the cryptocurrency market will persist. Nevertheless, there remains an expectation for recovery in the long term. These fluctuations in the market can create both risks and opportunities for investors.