Bitcoin Falls 10%, Solana Crashes 20%: Why Is Crypto Market Down Today?
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Analysts say Bitcoin and other cryptos have come under pressure due to scepticism over the implementation and regulatory approval of the US Crypto Strategic Reserves and on Trump Tariffs that have intensified economic uncertainty.
The crypto market experienced extreme volatility following former President Donald Trump’s announcement of a US Crypto Strategic Reserve.
A day after the cryptocurrencies skyrocketed following US President Donald Trump revealed the US Crypto Strategic Reserves, Bitcoin plummeted on Tuesday by nearly 10 per cent and other cryptos fell by up to 20 per cent. Analysts said the cryptos have come under pressure due to scepticism over the implementation and regulatory approval of the US Crypto Strategic Reserves and on Trump Tariffs that have intensified economic uncertainty.
The price of Bitcoin stood at $84,119.28 with a current market cap of $1,668.25 billion, as of 12:41 pm. The 24-hour trading volume was $76.75 billion. Bitcoin is -9.47 per cent in the last 24 hours with a circulating supply of 19.83 million.
Avinash Shekhar, co-founder and CEO, Pi42, said, “The crypto market experienced extreme volatility following former President Donald Trump’s announcement of a US Crypto Strategic Reserve, initially driving Bitcoin, Ethereum, and other major tokens higher. However, gains were short-lived as scepticism over implementation and regulatory approval led to sharp corrections. Adding to the turbulence, Trump’s proposed tariffs against China intensified economic uncertainty, triggering a broader market sell-off.”
Bitcoin fell over 9%, Ethereum plunged more than 15%, and Solana lost nearly 20% amid fears of escalating trade tensions, he added.
“Ongoing crypto fund outflows as another factor weighing on prices, reflecting cautious investor sentiment. While the idea of a government-backed crypto reserve stirred optimism, market reactions highlighted the sector’s sensitivity to policy shifts and the need for clearer regulatory frameworks,” Shekhar said.
According to CoinSwitch Markets Desk, all the gains BTC and crypto made one day before was washed out entirely as BTC struggled to find support even at $82,000, a straight fall from last day’s high i.e. $95,000, causing more than $1 billion worth of liquidations as ETH and other crypto are falling sharply as well.
“However, this is not the only market which is acting brutal towards its investors – with Trump confirming tariffs on China and Mexico to be started by March 4th caused S&P 500 to crash by more than 2% in point in the day,” it added.
On the other hand, SEC continues to drop its lawsuits against crypto players with Kraken and Yuga Labs being recently added to the list, said CoinSwitch Markets Desk.
Trump Tariffs
US President Donald Trump on Tuesday imposed new 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20%.
In response, China has announced that it will impose additional tariffs of 10%-15% on certain US imports from March 10, raising concerns over global trade war.
Bitcoin recently fell below $80,000 amid Trump Tariffs after hitting its all-time high of $109,350 in January. However, after Trump’s announcement on Sunday on the crypto reserve boosted the world’s biggest crypto with Bitcoin crossing above $94,000.