A day after Bitcoin and other cryptocurrencies skyrocketed following US President Donald Trump’s announcement of a US Crypto Strategic Reserve, the market saw a sharp downturn on Tuesday, with Bitcoin plummeting nearly 10% and several altcoins losing up to 20%.

Analysts attributed the crash to growing scepticism over the implementation and regulatory approval of the US Crypto Strategic Reserves, coupled with Trump’s new tariffs on China and Mexico, which have intensified global economic uncertainty.

Bitcoin and Crypto Market Crash

As of 12:41 PM, Bitcoin was trading at $84,119.28, with a market cap of $1,668.25 billion and a 24-hour trading volume of $76.75 billion. The leading cryptocurrency saw a -9.47% decline in the last 24 hours, with its circulating supply at 19.83 million BTC.

Bitcoin fell over 9%
Ethereum plunged more than 15%
Solana dropped nearly 20%

Avinash Shekhar, Co-founder and CEO of Pi42, explained the market turbulence:

“The crypto market experienced extreme volatility following Trump’s announcement of a US Crypto Strategic Reserve. While the news initially drove Bitcoin, Ethereum, and other major tokens higher, scepticism over its implementation and regulatory approval led to sharp corrections.”

“Adding to the turmoil, Trump’s proposed tariffs on China have intensified economic uncertainty, triggering a broader market sell-off.”

BTC’s $95,000 Rally Erased, Over $1 Billion Liquidated

According to CoinSwitch Markets Desk, all the gains from the previous day were erased as Bitcoin struggled to hold support at $82,000, dropping sharply from its day-high of $95,000.

This sharp decline caused over $1 billion worth of liquidations as Ethereum and other cryptos followed Bitcoin’s downward trend.

The stock market also suffered, with the S&P 500 crashing over 2% after Trump confirmed the new trade tariffs on China and Mexico.

Trump’s Tariffs & Global Market Impact

US President Donald Trump on Tuesday announced new trade tariffs:

• 25% tariffs on imports from Mexico and Canada
• Doubled tariffs on Chinese goods to 20%

In response, China retaliated with additional tariffs of 10%-15% on certain US imports starting March 10, raising fears of a global trade war.

Bitcoin, which had dropped below $80,000 last week due to Trump’s tariff policies, had recently surged past $94,000 after Trump’s Sunday announcement of a government-backed crypto reserve. However, the recent market turmoil has erased much of those gains.

SEC’s Ongoing Crypto Crackdown

Meanwhile, the US Securities and Exchange Commission (SEC) continues to ease lawsuits against crypto firms. Recently, it dropped cases against Kraken and Yuga Labs, signaling a shift in regulatory stance towards crypto players.

What’s Next for Bitcoin & the Crypto Market?

While Trump’s crypto-friendly stance initially fueled optimism, the lack of clear regulations and rising economic uncertainty from tariffs have caused investors to remain cautious.

Short-Term Outlook:

• Market remains volatile, with Bitcoin struggling to find support levels.
• Regulatory uncertainty continues to be a major challenge.

Long-Term Prospects:

• If Trump’s US Crypto Strategic Reserve plan moves forward, it could boost institutional adoption of Bitcoin.
• Investors are closely watching global trade tensions and Federal Reserve policy changes for further market cues.

As crypto markets navigate uncertainty, all eyes remain on Washington’s next move and how the global economy reacts to Trump’s policies.