Daily News: February 4, 2025 - Market Plunges After Trump's Tariff Announcement, Bitcoin Falls Below $100,000
El Salvador Increases Bitcoin Holdings
The Salvadoran government significantly increased its Bitcoin holdings by adding 200 more coins today, further showcasing its commitment as a "Bitcoin nation."
Additionally, El Salvador announced that Bitcoin will be fully accepted in all government payment systems.
U.S. Bitcoin ETF Experiences Turbulence
Yesterday, the U.S. Bitcoin spot ETF saw its first net outflow, with trading volumes soaring, indicating investor uncertainty about market trends.
Following Trump's policy announcement, the market showed clear divisions, with some investors opting to take profits.
Trump's Cryptocurrency Policy
Trump signed a new executive order proposing the establishment of a national cryptocurrency reserve and encouraging U.S. tech giants to explore blockchain technology.
This could signify that the U.S. government is set to take a more active role in the cryptocurrency market, aiming to reshape the global digital economy.
India's Crypto Policy U-Turn
After evaluating the global stance on cryptocurrencies, the Indian government decided to delay the release of its previously planned regulatory framework for cryptocurrencies.
Rumors suggest that India might launch its own digital currency to counter Bitcoin and other cryptocurrencies.
Market Fear and Greed Index
With Trump's trade policies in constant flux, the market's Fear and Greed Index reached extreme levels today, with investor sentiment swinging from extreme optimism to deep pessimism.
Cryptocurrency prices experienced significant fluctuations in a short period.
Coinbase Expands into South America
Coinbase has officially received approval from Argentine regulatory bodies, opening a new chapter in South America.
Coinbase plans to introduce Bitcoin and Ethereum trading in Argentina, alongside educational and training initiatives aimed at increasing cryptocurrency adoption in the region.
Bitcoin's Correlation with Traditional Markets
Financial analysts noted that Bitcoin's recent price movements are closely correlated with the performance of Nasdaq tech stocks.
Especially with the influence of Trump's policies, the volatility in tech stocks directly impacts Bitcoin's market performance, showing the cryptocurrency market's sensitivity to macroeconomic news.
Trump Family's Crypto Project Crashes
The cryptocurrency project launched by the Trump family plummeted by more than 80% within hours of Trump's inauguration, with many investors attributing this to the market's reaction to political uncertainty.
However, the Trump family claims this is merely a short-term adjustment, with room for recovery in the future.
Cryptocurrency as a Safe Haven
Despite market turbulence, data today shows that some investors are starting to equate Bitcoin with gold as a safe haven asset.
Particularly when traditional markets face uncertainty, some capital is shifting towards the cryptocurrency market.
Merger of International Crypto Exchanges
Today, two major international cryptocurrency exchanges announced their merger to strengthen their competitive position in the global market.
This merger will make them the second-largest platform after Binance, potentially having profound effects on market liquidity and prices.