#Which Altcoin Have You Bought Recently?   

How are crypto markets acting today after yesterday's sharp fluctuation?
While uncertainty increased in global markets with the USA's announcement of new customs tariffs on its allies, there were also sharp fluctuations in the cryptocurrency markets. Bitcoin fell to its lowest level in three weeks, falling to the 91 thousand dollars range, but quickly recovered and rose to 101 thousand dollars. Facing selling pressure again today, BTC began to test below the $99,000 level.
Ethereum also fell to its lowest level in recent months, recording its lowest price level since September. Although Ethereum and other altcoins have recovered due to the increasing risk appetite in the market, uncertainties continue.
China's retaliation: New tariffs against the USA
In response to new US trade measures, China has implemented new tariffs on critical US products. The new taxes targeted the energy and agriculture sectors, imposing an additional customs duty of 15% on coal, liquefied natural gas (LNG) and some automobile imports, and 10% on crude oil. These taxes will come into force as of February 10.
China has also restricted exports of critical minerals such as tungsten and ruthenium on national security grounds. In addition, it moved the trade war to the technology field by launching an antitrust investigation against US-based Google.
US-China trade war escalates further
US President Donald Trump temporarily suspended tariffs on Mexico and Canada, providing short-term relief to global markets. However, he continued his harsh stance towards China, further increasing the tension between the two countries.
While these developments created uncertainty in crypto markets, investors turned to search for a safe haven. Institutional investors, in particular, reduced their open positions in Bitcoin futures by 4%. Additionally, there was a total outflow of $235 million from 12 US-based Bitcoin-focused ETFs.
Altcoins are showing signs of recovery.
After the sharp declines in the crypto market, there were rapid recoveries in altcoins. XRP gained 50% in value, recouping its previous losses. Solana, on the other hand, rose to the level of 210 dollars and achieved some increase in investor confidence.
Ethereum also entered a recovery trend and climbed above the $2,700 level. While investor interest increased again with the general recovery signals in the markets, the US's postponement of tariffs on Mexico and Canada was one of the important factors supporting this rise. However, China's retaliation causes the recovery momentum in the market to remain limited for now.
Uncertainty continues in the crypto market
Although the cryptocurrency markets have shown a 3.3% recovery in the last 24 hours, the impact of the sharp declines at the beginning of the week is still felt. While the rapid recovery of the market after the sharp sales wave on Monday is noteworthy, it remains unclear whether new buying pressures will arise.
The market sentiment index entered the fear zone yesterday, falling to 44 levels. However, the index recovered in a short time and reached the level of 72, indicating that a partial confidence environment has been re-established in the market.
Bitcoin struggles critically at technical levels
Bitcoin dropped from $98,000 to $91,000 on Monday, causing panic among investors. However, it quickly recovered to $101,000, showing that buyers were still strong. Faced with selling pressure at this level, Bitcoin is struggling to exceed the 50-day moving average level.
Ethereum, on the other hand, fell below its 200-day moving average and returned to the region where it experienced consolidation between August and October last year. The weak course of Ethereum, which generally indicates the general direction of the altcoin market, pushes crypto investors to be cautious.
One of the largest liquidations in history took place
According to data, the recent price drop led to one of the largest liquidations in crypto history. It revealed that liquidations exceeded $8 billion and the daily liquidation amount reached $2.1 billion in this exchange alone.
According to reports, a total of $527 million was invested in global crypto funds last week. While Bitcoin investments increased by 486 million dollars, 15 million dollars were invested in XRP and 5 million dollars were invested in Solana. Investment in Ethereum decreased by 300 thousand dollars.
As Bitcoin's market dominance increases, there is a shift in institutional interest.
While Bitcoin's market dominance is rising again, the purchasing tendencies of institutional investors are attracting attention. However, MicroStrategy, which has been continuously purchasing Bitcoin for the last 12 weeks, paused its purchases for the first time last week. The company currently holds 471,107 BTC, with the average cost standing at $64,511.
Bitcoin price is traded 11.9% more expensive on South Korean exchanges compared to global prices. This difference, called the 'Kimchi premium', reached its highest level in three years, indicating that crypto demand in the region is increasing.
The US-China trade war and global economic uncertainties directly affect investor sentiment. The reflection of these developments on the crypto market causes fluctuations in Bitcoin and Ethereum prices.