The crypto market faced a brutal crash, shedding over $300 billion in value following Donald Trump’s sweeping tariffs on China, Mexico, and Canada. Bitcoin (BTC) nosedived nearly 10%, while major altcoins such as Ethereum (ETH), Solana (SOL), and XRP recorded double-digit losses.
The sudden downturn comes just a day after a market surge driven by optimism surrounding Trump’s US Crypto Strategic Reserves initiative. However, the excitement quickly turned to panic as fresh economic uncertainty rattled investors.
Bitcoin and Altcoins in Freefall
As of 12:41 PM, Bitcoin was trading at $84,119.28, down 9.47% in the past 24 hours. The leading cryptocurrency had earlier peaked at $93,600 before tumbling to a low of $83,300.
Altcoins suffered even steeper declines:
- Ethereum (ETH): Down 11%
- Solana (SOL): Plunged 15%
- XRP: Fell 12%
- Cardano (ADA): Monday’s biggest gainer, now the hardest hit, tanking 20% to $0.80
The overall crypto market capitalisation dropped 10%, now standing at $2.77 trillion, wiping out Monday’s gains, according to CoinMarketCap data.
Trump’s Tariffs Spark Global Sell-Off
The crypto crash coincided with a sharp downturn in traditional markets. The S&P 500 fell 2%, while the Dow Jones lost 650 points in the final hours of Monday’s trading session. The panic was triggered by Trump’s 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20%.
In response, China announced 10%-15% tariffs on select US imports, effective March 10, further fueling fears of a global trade war. As risk-averse investors offloaded assets, crypto markets were caught in the crossfire.
Was Trump’s Crypto Boom a Pump-and-Dump?
Trump has positioned himself as a pro-crypto president, but analysts are now questioning whether his recent actions amount to market manipulation. The US Crypto Strategic Reserves announcement triggered a surge in crypto prices, only for them to collapse within 24 hours.
Economist Peter Schiff accused Trump of orchestrating “the biggest crypto pump-and-dump scheme of all time” and called for a Congressional investigation into potential insider trading.
Bitcoin, which soared past $94,000 after Trump’s Sunday announcement, has now erased all its gains, trading well below its pre-announcement levels.
