The crypto market is taking a hit as multiple factors collide: Trump’s 25% tariffs on Mexico and Canada, hacking incidents, and liquidations on major exchanges like Bybit. While liquidity decreases, the influx of new coins and inflation pressures are only adding to the downward trend.
Investors became more cautious after Trump announced 25% tariffs on Canada and Mexico, and a 20% tariff increase on China, starting later today.
The crypto market experienced significant volatility following Trump’s crypto reserve announcement. While there was an initial surge in prices, those gains quickly faded as doubts arose over its execution and necessary regulatory approvals. Further, Trump’s announcement about tariffs added extra uncertainty, which led to a larger sell-off across the market.
Crypto Liquidations Cross $1 Billion
Crypto liquidations have surged to over $1.09 billion, with BTC alone accounting for more than $400 million. The crypto market has faced the most significant selloff of 2025, losing $460 billion in just 24 hours. This equates to an average loss of about $19.1 billion per hour for the last 24 hours staright, according to The Kobeissi Letter.
Bitcoin lost its weekend gains and is now trading between $82,000 and $85,000 as investors react to the upcoming U.S. tariffs. Market volatility is likely to continue, especially as these tariffs take effect later today. Bitcoin fell 9.8% to $83,725.
Alankar Saxena, CTO and co-founder of Mudrex, cautioned the investors to stay careful as volatility could continue if BTC drops below the $81,000 support. However, there is room for recovery with resistance at $92,000 if market sentiment improves.
Arthur Hayes Says BTC Could Drop To $70k
Arthur Hayes, the former CEO of BitMEX, has expressed optimism about Bitcoin’s current bull market, maintaining that the cryptocurrency is on track for continued growth. However, he also warned that in the worst-case scenario, Bitcoin’s price could drop to around $70,000, aligning with the previous cycle’s all-time high.
Altcoins Hit Harder
In the last 24 hours, altcoins have taken a bigger hit, with Ethereum dropping to $2,000 and heading towards its worst Q1 performance ever. Ethereum dropped 15% to $2,083. After a brief spike above $2,500 following Trump’s crypto reserve announcement, Ethereum has now collapsed to $2,050, erasing all its weekend gains.
The global crypto market cap fell by 10.5% to $2.76 trillion in the last 24 hours. Other altcoins also saw significant losses, with Cardano down 25%, Solana down 19%, Dogecoin down 16%, and XRP down 18%. However, Crypto analysts advise investors to stay calm and avoid panic selling.
