- Cryptocurrency markets experienced significant volatility, with Bitcoin dropping US$13k before recovering to US$101,198, a 6% increase over 24 hours.
- Donald Trump’s proposed tariffs on Canada, Mexico and China triggered market turbulence, drawing widespread criticism.
- Whales reportedly capitalised on the market downturn, with analyst Michaël van de Poppe suggesting large players intentionally caused market-wide capitulation to profit from the price dip.
- A press conference featuring David Sacks, Trump’s Crypto Czar, is scheduled to discuss making the United States a leader in the digital asset ecosystem, potentially signalling a broader approach to cryptocurrency integration.
The past few days have been – in typical crypto manner – a roller coaster, to put it mildly. Some cryptocurrencies, including XRP ($2.69) and Cardano (ADA ($0.79)), experienced significant declines, dropping up to 40% among those with the largest market caps.
Bitcoin dropped from US$105,451 (AU ($9.91)$169,907) on Saturday, to as low as US$92,877 (AU$149,661) on Sunday and has made its way past the US$100k hurdle again early Tuesday. At the time of writing the largest crypto by market cap is trading for US$101,198 (AU$163,054), a plus of 6% over the past 24 hours.
Related: Ripple’s Q4 2024 Report Shows Remarkable Growth, But Hong Kong Approval Causes Uncertainty for XRP
The most likely cause for the involuntary thrill ride? Trump’s tariff.
The Wall Street Journal called the tariffs the “dumbest trade war in history”, sentiment echoed by former Treasury secretary Larry Summers, who described them as “a stop or I’ll shoot myself in the foot” moment.
Trump had announced he would slap tariffs on close neighbours Canada and Mexico, as well as China, over what he called unfair treatment of the United States and alleged the flooding of the country with illegal Fentanyl.
The action was met with swift replies by Canada and Mexico that they would retaliate. Trump and his Mexican and Canadian counterparts have since been talking things over and it seems the worst is avoided, at least for now.
Trump agreed to pause the tariffs for a month after Mexican President Claudia Sheinbaum committed to stopping the flow of Fentanyl across the country’s border by deploying 10,000 troops.
Making the US a Leader In the Digital Asset Field
While the crisis seems over for the moment, whales have once again been the ones benefiting from the market turmoil.
In a perfect example of “buy the dip”, they seemed to have lined their pockets (okay, whales don’t have pockets to line, but you catch my drift).
Popular analyst Michaël van de Poppe said on X that “big players caused a market-wide capitulation to fill their own pockets”.
Today has been a crazy day where the markets have been going into the heaviest daily capitulation on Altcoins.
Michaël van de Poppe He said next is Trump’s signing of the sovereign wealth fund which could likely mean that Bitcoin is included – although that is just speculation at this point and nothing has been confirmed.
He also mentioned a press conference on digital assets which will be held at 2:30 PM Eastern Time in the US.
Related: Cardano Crashes Despite Charles Hoskinson Teasing ‘Crazy’ Developments for February
At the event, David Sacks, Donald Trump’s Crypto Czar, will “discuss how the Trump Administration and Congress” will make the US a “leader in the digital asset ecosystem”.
Many take this as a departure from a purely Bitcoin approach to include a wider variety of crypto assets in a national reserve.
JUST IN: David Sacks, Donald Trump’s Crypto Czar, is set to address the media tomorrow at 2PM on plans
“To Secure America as a leader in the Digital Asset Ecosystem.” 
Get ready #XRP 
pic.twitter.com/dZsbg1nOSE
— Amonyx (@amonbuy) February 3, 2025
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