Crypto Market Crashes Again as Trump Tariffs Trigger Massive Liquidations

The crypto market saw a sharp downturn with major liquidations, dragging the whole market lower.

The main reason behind this could be Trump’s tariffs on Mexico and Canada, which took effect and erased $460 billion from the market within a day. Bitcoin dropped over 10%, while Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) suffered losses between 12% and 25%. The initial excitement around Trump’s proposed U.S. crypto reserve quickly faded as economic concerns took center stage.

Mass liquidations followed, exceeding $1.09 billion, with Bitcoin alone accounting for $400 million in forced sell-offs. According to The Kobeissi Letter, the market saw an average hourly loss of $19.1 billion, making it one of the fastest crashes in recent history.

Bitcoin had briefly surged to $93,000 after Trump’s announcement but failed to sustain momentum, dropping to $83,500. Analysts suggest it could still revisit the $70,000–$75,000 range before a true rebound. Former BitMEX CEO Arthur Hayes sees $70,000 as a potential cycle low, while other analysts warn of further short-term volatility.

Altcoins have been hit even harder. Ethereum fell to $2,000, marking its worst Q1 performance to date, while major tokens saw a 25% correction in February alone. Analysts advise patience, as selling pressure remains high, with traders eager to offload positions at any sign of a bounce.

Earlier expectations of an altcoin boom have faded, with market sentiment at its lowest since the start of the year. As economic uncertainty grows, investors are bracing for a prolonged period of turbulence.