2025-02-04 12:12:00
The crypto market collapsed after Trump's duties. The oldest Ukrainian crypto exchange has ceased operations. Musk's father released a memecoin. India imposes stiff penalties for failure to disclose crypto revenues
The crypto market is under pressure: capitalization fell by more than 10%
The cryptocurrency market faced a sharp decline — on February 3, 2025, capitalization fell by 11.7% to $3.16 trillion. This was preceded by US President Donald Trump’s statements about imposing aggressive tariffs on imports of goods from Canada (25%), Mexico (25%), and China (10%). The US leader also hinted at similar measures against the EU.
Highlights:
- Bitcoin’s price dipped to $92.5k. As of February 4, 2025, the coin is trading at around $98.2k and has a capitalization of $1.95 trillion.
- Top altcoins, including Ethereum, Ripple, Solana, Dogecoin, and Cardano, lost 15% to 30% of their value.
- As of February 2-3, 2025, the daily volume of liquidations reached $2.32 billion, of which longs amounted to $1.92 billion.
Experts attribute the crypto market’s decline to heightened inflation expectations due to the tariff war, which could make it harder for the Fed to cut interest rates. Analysts, including former BitMEX CEO Arthur Hayes, predict BTC will drop to $75k by March 28, 2025. According to Derive.xyz, the probability of such a drop has increased from 10% to 22%. However, after the decline, experts predict another wave of growth. Bitwise believes that Trump’s trade duties will weaken the dollar and reduce the yield of US government bonds, which, in turn, will lead to an increase in the price of Bitcoin.
In parallel, spot ETFs for DOGE, SOL, XRP, and LTC cryptocurrencies from players such as Bitwise and Grayscale are gaining momentum. If the SEC approves their applications, it could give the market added legitimacy and attract new capital.
Crypto exchange KUNA is shutting down its operations
The Ukrainian crypto trading platform KUNA, which operated for almost 11 years, is leaving all global markets. This was announced by its founder, Mykhailo Chobanyan, specifying that the option of selling the exchange is not considered at the moment.
The reason for the closure was the court decision, which blocked the operation of KUNA in Ukraine without involving representatives of the organization in the process. According to Chobanyan, this was a real “surprise” for him and led to a forced “acquaintance” with the Economic Security Bureau (EBS), which accuses him of violating tax laws.
The KUNA founder added that he does not intend to come into conflict with the authorities and plans to focus his future activities on the development of technology, including artificial intelligence.
Exchange users were given about two months to withdraw their assets.
Elon Musk’s father launches Musk It memecoin
Errol Musk, the father of American businessman Elon Musk, decided to enter the crypto market with the Musk It memecoin. He plans to raise $150 – $200 billion with his partner Nathan Brown to fund the opening of a new commercial science and technology center — Musk Institute.
Errol Musk emphasized that the project is not related to his son and stated, “I am the head of the family, and my ideas deserve attention.” According to him, the coin was launched by a Middle Eastern cryptocurrency company in December 2024, and he and Brown became partners in the project. They were the ones who approved the name and the concept behind the creation of the Musk Institute.
The funds raised will be used for technology, artificial intelligence, and even flying car projects. “We need to go beyond rockets,” Errol noted.
Although many people associate memecoins with a high risk of depreciation, Errol Musk is confident in the success of his project, and his partner assured that Musk It will not turn into a “pump and dump” scheme, which involves artificial excitement around the asset with the subsequent collapse of its value.
On the night of the publication of Errol and Brown’s interview in Fortune, the rate of memecoin suddenly skyrocketed by 1,500%, from $0.014 to $0.22, but then, the quotes collapsed just as sharply to $0.02.
India tightens rules for crypto investors
Indian authorities are strengthening tax controls on digital assets. From February 1, 2025, a penalty of 70% of the tax will be assessed for hidden cryptocurrency income received over the past four years.
Cryptocurrency in India is now equated to precious metals and bullion, falling under the tax lock-in. Companies are required to report such assets under the Income Tax Act.
Earlier, authorities revealed that major cryptocurrency exchanges evaded $97 million in taxes in 2024. The bulk of the debt fell on Binance, which was required to return $85 million to the budget. These cases were the reason for the introduction of new restrictions.
Harsh measures are already affecting the market: in January 2025, the Bybit exchange suspended operations in India due to pressure from regulators. Experts believe that such restrictions will reduce the activity of traders and force businesses to leave the country.
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