Trade War Tsunami: Is This the End for Crypto?

Feb 13, 2025

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Ibiam Wayas

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The crypto market crash in the past few days has been fierce. So far, crypto has shaded about $1.3 trillion in market cap, since its peak in December.

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That figure represents a 33% drop in just three months, an average of $15.5 billion lost every single day for 84 days straight.

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The stock market is not left out either. Over the past two months, the S&P 500 and crypto have lost a staggering $5.5 trillion in market value.

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The trade war is being blamed for the collapse of both the crypto market and the stock market at large.

So, Why is the crypto market crashing?

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The United States has been embroiled in a trade war with other nations, including Canada, which obviously has been affecting sentiments and market appeal.

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But that’s not the full story. Institutional investors started bailing long before the drop even began. Heading into 2025, hedge fund exposure to Magnificent 7 stocks hit a 22-month low.

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Amidst the crypto market crash, the market currently sees over $2.6 trillion in market cap. It would be practically impossible for crypto to crash to zero.

Can crypto crash to zero?

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