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Crypto market drops as fear index hits 25 amid tariff concerns

Crypto market drops as fear index hits 25 amid tariff concerns

GrafaGrafa2025/02/25 11:10
By:Liezl Gambe

The cryptocurrency market is currently experiencing a period of heightened anxiety, with the Crypto Fear Greed Index plummeting to 25.

The shift to "Extreme Fear" reflects a significant shift in investor sentiment driven by external economic factors.

The drop in the sentiment index occurred following President Trump's announcement regarding the continuation of planned tariffs on imports from Canada and Mexico.

The potential for increased trade tensions has introduced considerable uncertainty into the market.

Bitcoin (CRYPTO:BTC) has experienced a notable price decline, falling below $93,000, reflecting the risk-off sentiment among investors.

The broader crypto market has also witnessed a downturn.

As of February 25, the total market capitalisation has contracted by approximately 8%, indicating widespread selling pressure.

Liquidations in the crypto market have surged to nearly $1 billion, underscoring the heightened volatility and risk aversion among traders.

The decline in open interest suggests reduced confidence and a contraction in speculative activity.

The initial announcement of tariffs earlier in the month had already triggered a market correction, with Bitcoin falling from approximately $105,000 to $92,900.

The latest decline reaffirms the sensitivity of the crypto market to macroeconomic developments and geopolitical events.

The fear index's descent into the "Extreme Fear" zone suggests that the market may be poised for a potential bottom.

Investors will be closely monitoring developments in the coming days to assess whether the negative sentiment persists or if there is an opportunity for a rebound.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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