The cryptocurrency market is under heavy pressure after President Donald Trump announced an additional 10% import tax on goods from China, bringing the total tax rate to 20%. This move not only increases trade tensions between the world's two largest economies but also causes financial markets, including crypto, to fall into a state of instability.

New Tax Policy Has Far-reaching Impact
The new tax rate is scheduled to take effect from March 4, after the previous 10% increase was implemented on February 4. At the same time, Mr. Trump still maintains the 25% tax rate on imports from Mexico and Canada, citing the fact that these countries have not effectively controlled smuggling and illegal immigration into the US.

These tough tariff policies are exacerbating trade tensions, negatively affecting the global supply chain and directly impacting investor sentiment. Faced with increased risks, the financial community has begun to adjust its strategies, leading to a wave of sell-offs in the stock and crypto markets.

Bitcoin Breaks $80,000, Crypto Market “Stained in Red”
Under pressure from new policies, the crypto market continues to witness a sharp decline. The prolonged sell-off has caused the total market capitalization to fall to its lowest level in 3 years.

Bitcoin – the largest cryptocurrency – has lost the $80,000 mark, falling to $79,532 before recovering slightly to around $80,235. In just the past 24 hours, BTC has dropped 5%, marking one of the worst halving cycles in history.

Ethereum is also not immune to the downtrend, losing 8.5% on the day and a total of 22% on the month. ETH is currently trading around $2,146, its lowest price since the crash in early August 2024.

In the context of the market decline, Aptos has become a rare bright spot. News that Bitwise investment fund filed for APT spot ETF registration has helped this coin recover strongly, currently trading at $5.83. Previously, Aptos had lost 38% of its value over the past month due to the negative impact from the general market.

Investor Sentiment At “Extreme Fear” Level
The decline of Bitcoin has led to capital flight from Bitcoin spot ETF funds. In the past 24 hours, 11 major funds recorded capital withdrawals of up to $2.5 billion - the highest outflow in history.

Bitcoin’s Fear and Greed Index is currently at 16, reflecting “extreme fear” among investors. According to data from CoinGlass, the derivatives market recorded $672 million in liquidations in just one day, indicating that panic is gripping the entire crypto ecosystem.

Conclusion
The cryptocurrency market is facing many challenges as Bitcoin and other major assets continue to plummet under pressure from Trump’s new tax policy and macroeconomic concerns. Investors need to closely monitor global political and economic developments to come up with appropriate investment strategies in the coming time.