Bitcoin is on shaky ground. After struggling to stay above $100K, it has now plunged to $92,000, wiping out nearly $1 billion in liquidations. The entire crypto market took a 7% hit, leaving traders reeling. While Bitcoin has seen pullbacks like this before – often right before hitting new highs – this crash feels different.
Uncertainty is in the air, and investors are not feeling good. What’s coming next?
Trump’s Tariff Announcement Triggers Sell-Off
The market crash followed comments from President Donald Trump confirming that the U.S. will proceed with tariffs on Canadian and Mexican goods. His statement raised concerns about whether the previously agreed pause on tariffs would end next week. Trump said the U.S. had been “mistreated” by its trading partners and insisted that tariffs would move forward as planned.
Bitcoin’s price quickly dropped below $92,000, sparking panic in the market. According to Coinglass, nearly $918 million in liquidations took place, affecting around 300,000 traders. Most of these were long positions, meaning investors who were betting on Bitcoin’s price going up suffered the biggest losses.
Market Reacts: Fear or Opportunity?
This isn’t the first time Trump’s policies have shaken the crypto market. A similar tariff announcement earlier this month triggered a $2 billion market drop. A recent JPMorgan survey suggests that tariffs and inflation will remain major concerns this year. Eddie Wen, JPMorgan’s global head of digital markets, noted that investors are reacting strongly to policy changes, leading to sharp price swings.
Despite the drop, some investors see this as a buying opportunity. MicroStrategy Chairman Michael Saylor called it a chance to accumulate Bitcoin at a discount, while Rich Dad Poor Dad author Robert Kiyosaki encouraged investors to buy BTC during market dips.
Analyst James on X pointed out that since Trump’s second term began on January 20, the crypto market has lost $734 billion—about 20% of its total value.
Top Gainers
Even as Bitcoin struggled, some altcoins gained investor interest. XRP led the inflows with $38.3 million. Since mid-November, XRP has attracted $819 million in total inflows, driven by optimism over a favorable SEC lawsuit resolution. Other altcoins, including Solana, Ethereum, and Sui, also saw inflows of $8.9 million, $3.7 million, and $1.47 million, respectively.
Meanwhile, Bitcoin-focused investment products recorded significant outflows, with $571 million leaving the market.
Top Losers
Among major altcoins, Solana saw the biggest drop, falling 6.91% to $158.98 as part of the broader sell-off. Ethereum and Cardano also declined, losing 2.20% and 3.98%, respectively, as competition from other smart contract platforms weighed on prices.
Meme coins weren’t spared either – Dogecoin dropped 5.66% to $0.23, while Shiba Inu slid 4.37% to $0.00001487, as hype faded and trading volumes declined.
With Bitcoin wobbling and altcoins scrambling for stability, the crypto market remains as unpredictable as ever – one tweet, one policy shift, and the tides could turn again.
Source: https://coinpedia.org/news/why-crypto-is-down-today-donald-trump-tariffs-caused-a-1b-crypto-liquidation/