Fear striking the American market was difficult to ignore, especially since President Donald Trump was pressure for fellow pricing wars as part of his campaign promises. But what is really surprising is how this fear is now spreading in the cryptography market.
The index of fear and greed of Bitcoin made a strong dive, going from more than 70% – a sign of greed – to around 50%.
Could this mean more troubles to come for Bitcoin and the wider market of cryptography?
Bitcoin faces a drop
As Coinpedia previously reported it, the Bitcoin price is now faced with the possibility of moving to its support level of around $ 91,000 after being rejected above $ 102,000 in the last two days. Since altcoins tend to closely follow Bitcoin prices movements, the entire cryptography market is likely to undergo short -term weakness.
New American trade restrictions and their impact
As part of the efforts to counter drug trafficking from China, the American postal service has announced that it would temporarily stop accepting international packages from China and Hong Kong, from February 4, 2025. However, it will always treat letters and apartments in these regions.
This suspension will have an impact on the electronic commerce sector, in particular companies such as Shein and Temu, which strongly depend on cross -border trade. In 2024, an average of 4 million packages worth $ 800 was sent daily from China to the United States.
Interestingly, the use of digital assets in trade between China and the United States has increased. Payment methods like Paypal, Visa, Apple Pay, Mastercard and Google Pay, which are increasingly taking digital assets, have become common in transactions between traders and customers in these two countries.
