Leading cryptocurrencies continued their downward march on Thursday as President Donald Trump’s tariff plan worsened investors’ fears.

What Happened: Bitcoin rose to $87,000 early in the morning, igniting hopes of a revival, only to fall back to the $83,000 zone by the evening.

The apex cryptocurrency has dropped 16.97% since the month began, on track for its worst February since 2014. 

Ethereum too plunged to an intraday low of $2,230.45 after lifting above $2,300 earlier in the day. The second-largest cryptocurrency was headed toward its worst February performance.

Over $390 million was liquidated from the cryptocurrency market in the last 24 hours, with $303 million in long positions wiped out.

Bitcoin's Open Interest dropped 4.62% in the last 24 hours. About 58% of Bitcoin futures traders were positioned short, according to the Long/Short Ratio, suggesting a bearish mood.

The Crypto Fear and Greed Index was at a multi-year low, with the current value of 16 last seen during the 2022 bear market.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.81 trillion, contracting 0.10% in the last 24 hours.

Stocks were back in the red on Thursday. The Dow Jones Industrial Average fell 193.62 points, or 0.45%, to close at 43,239.50. The S&P 500 slid 1.59% to end at 5,861.57, while the tech-heavy Nasdaq Composite dipped 2.78% to close the session at 18,544.42.

The sell-offs were triggered after Trump outlined a tariff plan against Canada, Mexico, and China, threatening to harm key sectors like automotive, food and beverage, oil, and consumer goods.

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Analyst Notes: Popular on-chain analytics firm CryptoQuant noted that the NVT Golden Cross was below -2.4, suggesting oversold conditions and a possible market bottom.

"Given these oversold conditions, if a rebound occurs, the 111-day moving average (DMA) at $96.895 may act as resistance during any potential price increase," the analyst added.

The NVT ratio is a metric that compares a cryptocurrency's market capitalization to its on-chain transaction volume. It can be seen as the equivalent of the price-to-earnings ratio.

Widely followed cryptocurrency commentator Ali Martinez painted a bearish forecast, citing the Moving Average Convergence Divergence indicator. 

"Every time the MACD has a bearish crossover on the weekly chart, BTC has historically seen an average 40% correction. The MACD just flashed another bearish crossover," Martinez analyzed.

Photo by Avi Rozen on Shutterstock

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