The cryptocurrency market took a major hit as U.S. President Donald Trump’s new tariffs on Canada, Mexico, and China triggered a massive selloff. Investors rushed to cut exposure to riskier assets, leading to sharp declines across the board.
Bitcoin & Ethereum Lead the Losses
🔻 Bitcoin (BTC) dropped 5%, falling to $93,921, and even hit a three-week low of $91,441 before stabilizing.
🔻 Ethereum (ETH) took the worst hit, crashing 26% to $2,135, marking its biggest single-day drop since May 2021.
🔻 Altcoins also suffered steep losses:
- DOGE plunged 23% to $0.2313
- XRP dropped 21.6%
- Solana (SOL) declined 6%
The overall market remains on edge, with analysts warning that Bitcoin must hold above $90,000-$95,000 to avoid further declines.
What Triggered the Crash?
🚨 Over the weekend, Trump imposed 25% tariffs on Canada and Mexico and 10% on China, sparking fears of a global trade war.
🚨 Canada, Mexico, and China immediately threatened retaliation, adding more uncertainty to the market.
🚨 This led to $2 billion in crypto liquidations, making it one of the biggest selloffs in recent months.
From Rally to Crash: A Sudden Market Shift
Just a few weeks ago, Bitcoin was flying high at $107,071, fueled by optimism that Trump’s presidency would bring crypto-friendly regulations. In fact, on January 24, 2025, Trump signed an order to set up a regulatory group to draft clear rules for crypto businesses and explore the idea of a U.S. crypto reserve.
But sentiment quickly flipped, as the latest economic policies raised concerns about global instability. Now, traders are closely watching key support levels, with many saying Bitcoin must reclaim $100K for the bull run to continue.