Bitcoin (BTC) price continues its fourth day of decline, testing the lowest levels in nearly a month on Monday, February 3, 2025. Since last Friday, the drops reached almost 14% at one point, reacting to reports about new tariff plans from the new-old U.S. President Donald Trump.

The sudden BTC slump also triggered panic in altcoins, causing a temporary flash crash. Let's examine why Bitcoin is falling and what caused such a strong reaction in the cryptocurrency market.

Why Is Bitcoin Price Down Today? Trump's Tariffs Shake Markets

Donald Trump announced on Sunday that he's imposing 25% tariffs on neighboring Canada and Mexico. The new rules are set to take effect on Tuesday, and the president simultaneously announced that similar trade fees will soon be imposed on the European Union (EU).

In response, Wall Street futures contracts recorded a significant decline: Dow dropped 1.4% (over 600 points), and S&P 500 futures fell 1.9%. The tech-heavy Nasdaq slid 2.4%. The U.S. dollar automatically surged, rising 1% against a weighted basket of currencies.

Given this market configuration and panic, Bitcoin's decline was almost inevitable.

"The recent tariff announcements, which introduced higher tariffs on Canada, Mexico, and China, underscore the impact of geopolitical shifts on global markets. In the short term, such measures can introduce significant volatility - just as we saw when Bitcoin plummeted following similar tariffs and trade tensions in the past," commented Sumit Gupta, the Co-Founder at CoinDCX.

Bitcoin is currently trading at $95,700, down 2.3% compared to Sunday's close. However, the decline was much steeper, reaching almost 7% at one point overnight. Bitcoin is now in its fourth consecutive day of decline, during which it has fallen about 14%, and is testing the $91,281 level, the lowest since January 13.

“The writing was on the wall,” said Nigel Green, the CEO of financial firm deVere Group. “This was entirely foreseeable. Yet, too many market participants buried their heads in the sand, convinced that the worst wouldn’t materialize. Now, the consequences are here, and investors need to act—fast.”

Will Bitcoin Fall? BTC Technical Analysis Shows Strong Support

Despite Monday's decline triggering panic in the cryptocurrency market and a wave of leveraged position liquidations, Bitcoin still maintains strong support. For over two months, BTC has held above $92,000, which marks the lower boundary of the current consolidation.

This level has been tested eight times, most actively at the turn of the year, each time providing bulls with a defense line. The last test, appearing as a bullish pin bar two weeks ago, was a signal for growth that pushed Bitcoin to new historical highs on January 20 at $109,312.

Investors should closely watch how Monday’s session closes. If the $92,000 level holds and the session ends significantly higher—around current levels, for example—it will signal that buyers are ready to defend this level and accumulate BTC in its vicinity.

But what if a breakout occurs? In that case, the $83,000 area will become critical, as it aligns with the 200 EMA, which serves as both support and an indicator that the uptrend has remained intact since October. Only a drop below this moving average would signal to me that sellers are gaining momentum.

“The markets will remain highly reactive in the coming days and weeks. Investors must position themselves strategically to mitigate risks and seize opportunities as assets reprice,” Green added.

Altcoin Bloodbath: Ethereum, XRP, DOGE and TRUMP Down

While Bitcoin's decline remained within the volatility standards we're accustomed to in cryptocurrencies, the situation with altcoins was far more severe:

• Ethereum (ETH) fell over 20%, testing $2,150 and August lows
• XRP contracted by more than 30%, dropping to just $1.8, the lowest since December
• Dogecoin (DOGE) declined 25%, testing $0.27
• Donald Trump's meme coin TRUMP lost about 17%, trading at $17.5, significantly below its Binance debut price of $27

Mass Liquidations of $2.3 Billion

The scale of the decline in the cryptocurrency market is perfectly illustrated by leveraged position liquidation data. Over the last 24 hours, $2.26 billion in leveraged positions were wiped out, including $1.88 billion in long positions. The most liquidations were observed not in Bitcoin ($411.8 million) but in Ethereum ($611.6 million), which experienced one of the most severe drops.

The fear and greed index automatically fell to 39 points, indicating fear among cryptocurrency investors. The total ecosystem volume shrank to $3.11 trillion, falling to the lowest levels since November.

Bitcoin Price, FAQ

Why is the Bitcoin price falling?

The primary catalyst has been Donald Trump's announcement of new trade tariffs, which sparked broader market uncertainty. The cryptocurrency market, increasingly correlated with traditional financial markets, reacted strongly to this news. Additionally, the strengthening U.S. dollar and declining stock futures have created a risk-off environment where investors are moving away from volatile assets like cryptocurrencies.

Will BTC rise again?

The cryptocurrency maintains strong technical support at around $92,000, which has proven to be a reliable defense line over the past two months. The upcoming Bitcoin halving event in 2024, combined with increasing institutional adoption and the success of spot Bitcoin ETFs, provides a solid foundation for potential future growth. However, short-term volatility should be expected as the market digests current geopolitical and economic uncertainties.

What is causing crypto to fall today?

The current crypto market downturn is primarily driven by macroeconomic factors and market sentiment. Trump's protectionist trade policies have triggered a broader market sell-off, affecting both traditional and crypto markets. This has led to significant liquidations of leveraged positions, particularly in altcoins, creating a cascade effect across the cryptocurrency ecosystem. The fear and greed index dropping to 39 points reflects the current market anxiety, contributing to the selling pressure.

What will the price of Bitcoin in 2025 be?

While some analysts project potential prices ranging from $150,000 to $250,000 by 2025, citing institutional adoption and scarcity after the halving, these predictions should be viewed with caution.