Why Is Crypto Market Down Today?

The crypto market is feeling the heat again, with Bitcoin, Ethereum, Dogecoin, and XRP all taking a major hit. Bitcoin has fallen by 10%, Ethereum by 15%, and XRP by 17%. The selloff is being driven by concerns over President Trump’s tariffs and growing fears of a potential recession.

CME Gaps Fueling The Drop?

Crypto analysts say Bitcoin’s price drop is due to CME gaps. Analyst Hardy pointed out that Bitcoin filled one gap today but needs to drop to $85,000 to fill another, with a bigger gap at $77,900 still open. He believes filling these gaps will pave the way for Bitcoin’s next rally. Titan of Crypto also sees a pullback before Bitcoin moves up again, which seems to be happening now.

As per The Kobeissi Letter, between 10:00 AM and 3:30 PM ET, the S&P 500 erased a whopping $1.5 trillion in market cap. Notably, the selling pressure began ahead of Trump’s ‘investment announcement.’ The investment announcement began on a strong note, with Taiwanese semiconductor company announcing a $100B investment in the US. The move is expected to generate “hundreds of billions of dollars” in economic activity.

Trump Confirms Tariffs For Tomorrow!

Further, President Trump confirmed that 25% tariffs on Canada and Mexico will start tomorrow, March 4th, where markets had hoped these tariffs would be delayed again.

Adding to the concerns, shortly after, the White House announced that President Trump signed an Executive Order raising tariffs on China to 20%. This marks a 20% increase in China tariffs over the past two months.

$500B Wiped Off

Crypto markets took a sharp dive as no new details on the US Crypto Reserve emerged. Crypto markets are now down $100 billion from their value before the US Crypto Reserve announcement. In the past 24 hours, $500 billion in market cap has been erased in a massive reversal. Besides, Trump’s announcement that the crypto reserve will include altcoins like Solana, Cardano, and XRP surprised many, who expected only Bitcoin to be included. Mixed reactions are adding to the market crash, as investors question the reserve’s credibility.

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Ethereum Loses It All!

Ethereum has now erased all of its post-crypto reserve announcement gains. Prior to Sunday’s news, ETH was at $2,170, and it’s now dropped to a new low of $2,094, which is 3.5% lower than before Trump’s announcement. Altcoins like Dogecoin, and XRP are falling as they closely follow Bitcoin’s price movements. As of writing, XRP, Solana, and Cardano are currently trading at $2.3, $136.9, and $0.8011, down over 17%, 19% and 24% respectively in the last 24 hours.

As the trade war intensifies, the US average tariff rate is set to reach levels not seen since the Great Depression, potentially rising above 20%. This doesn’t even account for the possible 100% tariff on BRICS countries. With all this volatility, big opportunities are on the horizon for traders.

Tariffs Go Live:

In a latest update, President Trump’s 25% tariffs on Canada and Mexico and 20% tariffs on China have officially gone live. Canada’s retaliatory 25% tariff against the US is also now live. The trade war has begun with more volatility expected.

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