Over the last day, Bitcoin has dropped by 7.4%, falling below $82 150 and returning to the lowest price level in the last nine months. Major cryptocurrencies have also gone into the red zone, and the total market capitalization of the cryptocurrency market has decreased by 6.7%.

The market capitalization of Bitcoin itself has decreased by 6.7% to $1.63 trillion, while the daily trading volume of the first cryptocurrency has increased by 78.6% to $78.45 billion. The price of Ethereum has decreased by 8% over the day to $2712. The cryptocurrencies SOL and XRP have dropped by 8% to $113.6 and $1.73 respectively.

The correction of Bitcoin and major cryptocurrencies has been influenced by events in American politics. U.S. President Donald Trump signed a state of emergency due to the actions of the Cuban authorities, which represent an 'extraordinary and unusual threat' to the U.S. The decree implies tariffs on goods from countries that sell and supply oil to Cuba.

Moreover, Trump announced his readiness to declare the name of the new chairman of the U.S. Federal Reserve (Fed). American media report that former Fed governor Kevin Warsh met with Trump in the White House and 'made an impression on the president.' Investment analyst Lai Yuen from Fisher8 Capital expects that if Warsh is appointed as Fed chairman, the bearish trend in the cryptocurrency market will continue, as this manager supports a loosening of the main financial regulator's policies.

Investor risk appetite is also reduced by the growing tensions in the South China Sea, the consequences of suppressing protests in Iran, and the ongoing military conflict between Russia and Ukraine that has lasted for four years. Zerocap analyst Emir Ibrahim believes that all these events provoke capital outflows from high-risk assets like cryptocurrencies to safer ones.

The head of research at the options platform Derive, Sean Dawson, expects that the beginning of February will be painful for the cryptocurrency market, as Bitcoin could fall to $70,000–$75,000. Dawson believes that the implementation of the CLARITY bill, which delineates the powers of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC), is unlikely to lead to an increase in cryptocurrencies in the short term.

The founder of blockchain company Animoca Brands, Yat Siu, recently stated that Trump has stopped influencing the future of the cryptocurrency market.