The crypto market plunged as Trump’s new tariffs rattled investors. Bitcoin (BTC) and major altcoins faced sharp declines, with BTC dropping from $93,000 to $83,500. In just 24 hours, the market lost $460 billion in value. The sudden crash erased gains from Trump’s crypto reserve announcement, shaking investor confidence. Ethereum (ETH), Solana (SOL), and XRP saw losses between 15% and 25%, while trading volumes surged as panic-selling took over.
The impact wasn’t limited to crypto. Stock markets also took a hit, with the S&P 500 dropping 2.1% and the Nasdaq plunging 3%. Major tech stocks, including Nvidia, fell sharply as investors worried about supply chain disruptions. The Dow Jones lost 800 points, marking its worst day of 2025. Analysts warn that risk assets, from crypto to equities, could face more turbulence as trade tensions escalate.
Altcoins Struggle as Stock Market Also Crashes
Altcoins are not the only victims of the tariff shock. Stocks also plunged as China and Canada announced retaliatory tariffs. The S&P 500 dropped 2.1%, while the Nasdaq tumbled 3%. Nvidia, a major player in tech, lost 9% in value. The stock market turbulence made things worse for crypto. Investors rushed to sell, fearing more losses. Ethereum dropped to $2,000, marking its worst Q1 in history. Analysts warn that the broader market sentiment is turning bearish. Risk assets, including crypto, may face more downside before finding stability.
“Trump’s punitive tariff policy is beginning to take a toll. As trade war looms, a general risk-averse mood seems to be taking over the markets. However, fear also sparks interest in safe-haven assets such as gold and silver, as opposed to cryptocurrencies. Yet, traders should not succumb to fear, caution must be exercised, yes, but there are opportunities to be had even when the markets turn negative. It remains to be seen whether President Trump’s ‘punitive’ tariff policy will isolate America and for how long,” says Van Ha Trinh, Financial Markets Strategist at Exness.
The shift toward gold and silver suggests investors are looking for traditional safety nets rather than volatile crypto assets. If panic continues, further sell-offs in both crypto and stocks could follow.
Tariffs Spark Record Liquidations Across Crypto
With Trump’s tariffs now active, forced liquidations are hitting record highs. Coinglass reports that over $1 billion in crypto positions have been wiped out. Bitcoin’s sudden drop from $93,000 to $83,500 triggered major sell-offs. The liquidation wave also crushed Solana, XRP, and Ethereum traders. Many investors were caught off guard. The market was optimistic after Trump’s crypto reserve announcement. But the new tariffs erased those gains in hours. Now, analysts say BTC could dip to $70,000 before finding a bottom.
Trump’s Tariffs Escalate Trade War
Trump’s global trade war is shaking up the financial markets. The U.S. hit Mexico, Canada, and China with new tariffs. Canada fired back with $107 billion in countermeasures. China also rejected the tariffs and promised retaliation. As a result, both crypto and stock markets tumbled. The Dow Jones fell 800 points. Oil prices slipped, while gold surged as investors sought safer assets. Crypto, seen as a risk asset, couldn’t escape the sell-off. Bitcoin is now struggling to hold key support levels, and altcoins remain under pressure.
What’s Next for Crypto? Can BTC Recover?
Crypto investors are wondering what comes next. Bitcoin is still down 10% in 24 hours. Analysts predict a possible drop to $70,000-$75,000 before the market stabilizes. Former BitMEX CEO Arthur Hayes believes the long-term bull run is intact. However, short-term volatility will remain high. The altcoin market looks even weaker. Many traders are selling off their holdings. The Fear & Greed Index has shifted back to extreme fear. For now, the market is waiting to see if Bitcoin can hold key support levels. If not, another wave of sell-offs could be coming soon.