The Crypto Markets Rollercoaster: Bitcoin, XRP, Solana, Ethereum and Co.:

The week began with a “Black Monday” for Bitcoin and Co., now the price curves for altcoins such as Ethereum, XRP and Solana are recovering. But the crypto markets rollercoaster ride deserves analysis.

On Monday morning, February 3rd, investors were woken up by painful losses on the crypto markets:

The leading currency Bitcoin (BTC) had fallen by around 10 percent almost overnight and was struggling to defend the support level of $90,000. Popular altcoins such as Ethereum (minus 35 percent), Solana (minus 24 percent) and Ripple (XRP) (minus 28 percent) were hit even worse.

But 24 hours later, the situation is already looking much better again, Bitcoin is currently trading at around $100,000and has thus almost compensated for the lightning losses. But the shock is deep – and is leading to the search for the causes of “Black Monday.”

The new US President Donald Trump had already caused considerable nervousness on the financial markets at the weekend when he announced punitive tariffs for China and its neighboring countries Mexico and Canada. The assessment was that their implementation would have far-reaching consequences for the global economy. Since the crypto markets never sleep, a rapid downward movement began, leading Bitcoin, XRP, Solana and Ethereum all to levels of an annual low.

“Black Monday” causes billions in liquidations in crypto futures

The disaster was clearly reflected in the crypto futures markets: data services such as Coinglass counted almost $2.4 billion for positions that were liquidated. Ben Zhou, head of the crypto exchange Bybit and a well-informed market participant, estimated the real amount of losses in crypto futures to be much higher. On X , Zhou explained why data services reach their limits in crisis situations and estimated the liquidations in crypto futures at $8 to $10 billion within 24 hours.

In absolute terms, at least, this “Black Monday” was even more brutal than the dramatic moments of recent years, when the collapse of the crypto exchange FTX and, even before that, the outbreak of the Covid pandemic caused Bitcoin and Co. to crash. But this time the recovery started faster – when Trump temporarily suspended punitive tariffs first for Mexico and then for Canada, the price curves of XRP , SOL and ETH also turned positive again. But for now, Ethereum in particular still looks badly battered and has missed the opportunity to return to prices above $3,000.

The current state of affairs is that Trump wants to reach a mutual agreement with Mexico and Canada on the issue of punitive tariffs and border security. China, on the other hand, is preparing punitive tariffs of its own. The risk of distortions in international trade is thus reduced, but not eliminated. Analysts note: In the medium and long term, Bitcoin in particular is an option for protecting assets from inflation caused by a strong US dollar. The importance of stablecoins such as Tether (USDT) and USDC could also grow because they provide developing countries with an alternative for processing international transactions in US dollars with almost no fees.

Conclusion: Bitcoin and Co. experience a rollercoaster of emotions

The Covid crisis had already shown that Bitcoin’s price development cannot decouple from macroeconomic dynamics. It is also not new that altcoins such as XRP, Solana and Ethereum exaggerate Bitcoin trends in the event of a crisis. For some investors, however, this is the first time they have experienced a sudden collapse in Bitcoin – will they now become more cautious or even turn their backs on the crypto markets?

This “Black Monday” will have reverberations and President Trump has demonstrated that his decisions have an impact on financial markets almost in real time, but are hardly predictable. If this continues, Bitcoin and the major altcoins such as XRP, Solana and Ethereum will have to get used to the fact that price-relevant news can come from the White House at any time.

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(Featured image by Alesia Kozik via Pexels)

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First published in BLCOK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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