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Trump`s Tariffs Caused a Correction in the Bitcoin Market

The main decline began around 5:00/6:00 PM, and by morning Bitcoin had regained its positions but later fell again below the psychological level. According to Coinglass, over the past 24 hours, the liquidation volume in the crypto market amounted to $540 million of which $482 million was attributed to long positions. At the same time, a large share of forcibly closed positions relates to low-cap altcoins from the ”other” category. The largest digital assets also demonstrated a drop. Ethereum fell below $3,100, decreasing by 6.6% over the day. The hardest hit were SOL (-17.5%) and DOGE (-14.1%). ADA lost 9.8%, retreating to $0.88. U.S. Tariffs and Responses from Other Countries According to a statement from the White House on February 1, “Trump imposes a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.” “[The President] is taking bold action to compel Mexico, Canada, and China to fulfill their promises to stop illegal immigration and halt the flow of toxic fentanyl and other drugs into our country,” the statement said. In response to the new tariffs, Canadian Prime Minister Justin Trudeau announced at a press conference plans to impose a 25% tariff on certain American goods. According to CNN, the Ministry of Commerce of China is preparing to file a complaint with the World Trade Organization and “take appropriate countermeasures.” President of Mexico Claudia Sheinbaum stated in a lengthy post on X that she instructed the Minister of Economy to “implement Plan B,” which includes “tariff and non-tariff measures to protect the interests of the country.” “It turns out that Trump seems unafraid of economic and market fluctuations. His exact words: ‘There may be some temporary, short-term disruptions, and people will understand this.’ Based on the experience of 2018-2019, it is reasonable to expect at least a 10% correction in the stock market index,” journalist Colin Wu suggested. So far, the S&P 500 and Nasdaq 100 indices have not shown significant declines. However, in the long term, Wu sees U.S. tariffs as negative for macroeconomics. Impact on Cryptocurrency Opinions on Trump`s tariffs` impacts on the crypto industry within the community vary. Founder of Crypto Capital Venture Dan Gambardello considers the situation stable. “I cannot believe there’s a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle. Blackrock is continuing to accumulate ETH and BTC while retail frantically panics because crypto is currently consolidating” Gambardello added. Head of Alpha Strategies at Bitwise Invest Jeff Park noted that some “still do not realize what an amazing impact a tariff war will have on the first cryptocurrency.” “Listen, buddy, I’m all for Bitcoin, but it’s not like that. Bitcoin is not sufficiently separated from global markets and trades as a technology with triple leverage these days. Economic contraction of such scale means only pain for everyone, and we must be ready to condemn this,” argued Cinnaeamhain Ventures partner Adam Cochran. CoinOtag

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DWF Labs Co-Founder Says AI Market Dip Is a Rebalancing, Not the End of the Trend

Andrei Grachev, co-founder of crypto market maker DWF Labs , believes the recent AI market correction is a “narrative rebalancing” rather than the end of the trend . Posting on X (formerly Twitter) , Grachev compared the AI sector’s pullback to Bitcoin’s 2017-2018 crash , arguing that AI, AI agents, and DeFAI (Decentralized Finance + AI) remain at strong entry points with significant potential . AI Market Dip: Correction or End of the Trend? Market corrections are natural – Grachev views the dip as a healthy reset, not a collapse . Bitcoin’s 2017-2018 Comparison – After BTC crashed, it rebounded to new highs, which AI could also experience . Strong Entry Points for AI & DeFAI – The sector’s fundamentals remain strong , creating long-term opportunities . With AI-driven innovations gaining traction across industries , the market dip may offer strategic accumulation periods for investors . Why AI & DeFAI Still Have Strong Potential Key Factors Supporting AI Growth: Institutional & Enterprise AI Adoption – Companies are continuing to integrate AI into business operations . Decentralized AI Finance (DeFAI) Expanding – AI-powered DeFi applications are evolving rapidly . Long-Term Innovation Cycle – Like Bitcoin’s past market cycles, AI technology is still in an early adoption phase . Despite the short-term correction , AI’s growth trajectory remains intact , with new use cases and adoption continuing . What’s Next for AI & Crypto Markets? Potential AI & DeFAI Resurgence? – If historical tech cycles repeat, AI could see strong growth post-correction . Institutional Investments in AI – Big firms may use this dip to enter or expand AI exposure . Market Volatility Before Recovery? – Traders should expect continued short-term price swings . Grachev’s comparison to Bitcoin’s past cycles suggests that AI’s long-term potential remains promising . FAQs What did DWF Labs’ co-founder say about the AI market dip? Andrei Grachev described it as a “narrative rebalancing,” not the end of AI’s growth . How does this compare to Bitcoin’s 2017-2018 cycle? Bitcoin saw a major crash before rallying to all-time highs , and AI markets could follow a similar pattern . What is DeFAI? DeFAI (Decentralized Finance + AI) integrates AI-driven decision-making in DeFi protocols . Is AI still a strong investment opportunity? Yes, AI adoption continues expanding , and experts see the current dip as a potential accumulation phase . Will AI markets recover soon? While short-term volatility may continue, AI’s long-term fundamentals remain strong . Conclusion DWF Labs co-founder Andrei Grachev believes the AI market dip is a correction, not the end of the trend , drawing parallels to Bitcoin’s historic price cycles . With strong fundamentals, institutional adoption, and ongoing AI innovations , the sector is poised for future growth despite short-term fluctuations . As AI and DeFAI continue evolving, investors may see this dip as an opportunity rather than a setback . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries. CoinOtag