What are the reasons for the decline in the encryption market?

Author: 0xFacai, BlockBeats

On the last two days before the construction in 2025, the Bitcoin fell below $ 92,000 in the short term. In the past 24 hours, the entire network was $ 2.028 billion, of which more than 1.766 billion US dollars were built, and the short single position was 270 million US dollars. In addition, in the past 24 hours, a total of 700,594 people in the world have been exploded, and the largest single explosion warehouse has occurred in Binance -ETHUSDT values ​​at $ 25.635 million.

Since the Spring Festival holiday this year, Bitcoin has fallen sharply in a short time. The following are the market reasons why Bitcoin compiled by BlockBeats has fallen for readers only.

Deepseek trigger the "small financial crisis"

On January 27th, the domestic AI model DeepSeek downloaded the top of ChatGPT to top the US App Store list, causing attention and reports from the global technology, investment industry and the media. Because DeepSeek performance is comparable to the huge cutting -edge models such as OPENAI, its training cost is less than $ 6 million, which has made the foundation of the AI ​​industry that has always believed in the "strong miracle". Essence

On January 29, many US officials responded to Deepseek's impact on the United States, saying that Deepseek was "theft" and was conducting national security investigations on its influence. Just the day before, US President Trump also said that DeepSeek was a very active technical achievement. On February 2nd, Cathie Wood, CEO of Asset Investment Management Company Ark Invest, said in an interview that DeepSeek proved that the success of success in the AI ​​field does not require so much money, and the cost crash has accelerated.

Affected by DeepSeek, Nvidia fell 5.3%on the day, the Nasda Index fell more than 400 points, and the market value of US stocks evaporated nearly trillions. Bitcoin and cryptocurrencies were also affected as risk assets, and Bitcoin fell 4.4%on the day. ETH fell 3.8%. After a week of restoration, the market performance was still weak, and it fell hugely on Monday. The next trend of the encryption market may need to further observe the performance of the US stocks after opening the market.

Trump government tariffs landing

During the Trump's campaign, the tariff stick promised to the United States has gradually landed in recent days. On February 2nd, the US government announced a 25% tariff on imported goods from Canada and Mexico. U.S. President Trump signed a tariff order on the same day to levy 25% additional tariffs on imported products from Canada and Mexico, and levied 10% tariffs on energy resources from Canada. Tariffs are tentatively effective on the 4th. The White House said that if the US tariffs are retaliated, the United States may increase tariffs.

Previously, Trump signed an administrative order to impose a 10% tariff on imported goods from China. On the same day, the White House said that the United States will impose 10% tariffs on the basis of existing tariffs on all imports from China. Trump said it was in line with the "protectionist measures" he supported.

On the 3rd, Trump also said that "affirmation" will impose new tariffs on the European Union. He once again complained that the United States had a trade deficit with the European Union and believed that the EU was insufficient to import US and agricultural products. Trump does not specify the tariff level or timetable. He told the media, "I won't say that there is a time table, but it will be soon."

According to Bloomberg, Caroline Bowler, CEO of BTC Markets, said: "Trump's tariff policy is affecting the entire market, and concerns about the decline in trade war and stagflation are spreading to the cottage and bitcoin market." Affected by tariffs, affected by the news, BTC once fell to nearly $ 91,000, the lowest level in more than two weeks. But on the other hand, Jeff Park, director of Bitwise Alpha Strategy, also said that Trump's trade tariff policy will push the price of Bitcoin in the long run because this will lead to weakening the US dollar in the global currency market and reduce US Treasury yields to reduce the yield of US Treasury bonds. Essence

Salvador cancel the status of Bitcoin fiat currency

On January 30, according to Cointelegraph, the Salvador Parliament has quickly revised its Bitcoin law to comply with the International Monetary Fund (IMF) agreement. The ruling member Elisa Rosales said that the amendment aims to ensure that Bitcoin "permanently as a legal currency" and promote its "practical application".

On February 2nd, the El Salvador Parliament (controlled by the ruling party) passed a amendment of the Bitcoin Law low -key to cancel the status of Bitcoin as the official currency, making it completely depends on personal choice. This reform was made under the pressure of the International Monetary Fund (IMF) for nearly two years. The IMF requires the Salvado administration to "reduce the risk of Bitcoin."

El Salvador was the first country in the world to use Bitcoin as a legal currency, and now it has become the first country to abandon this policy. Bitcoin is no longer a "currency" in El Salvador. The use of the 6 clauses of the Bitcoin Law with completely voluntary parliament members and abolished 3 clauses (a total of 16 clauses have been implemented since its implementation). From now:

· Bitcoin is no longer regarded as "currency", and merchants no longer have to accept Bitcoin payment.

· It has become voluntary and no longer has legal payment capabilities.

· The government no longer accepts Bitcoin tax.

Although the ruling party reluctantly accepted the amendment, it did not propagate. Although President Bakl is very active in social media, he has not published any comments so far. However, the data on the chain shows that Salvador is still increasing Bitcoin. On February 1st, Salvador increased its holdings of 5 BTCs over the past 24 hours. The total position reached 6,055.18 BTCs, worth $ 618,113,096. Earlier on January 20, Salvador increased his holdings of 11 BTCs ($ 1,113,508). On January 14th, according to Bitcoin Magazine, Max Keiser, a senior Bitcoin consultant at Salvador, revealed that President of El Salvador Bukele is preparing to install Bitcoin nodes in each family in the country.