Crypto Crash: Bitcoin, Ethereum Plummet Amid Global Trade Tensions

Cryptocurrency markets experienced a significant downturn on February 27, with Bitcoin (BTC) and Ethereum (ETH) leading the decline amid escalating global trade tensions. U.S. President Donald Trump's announcement of new tariffs on the European Union (EU) sent shockwaves through global markets, triggering a sell-off in cryptocurrencies.

Bitcoin, the world's largest cryptocurrency by market capitalization, plummeted to an intraday low of $82,000, marking a nearly 4% drop from its previous level. Ethereum, the second-largest cryptocurrency, also witnessed a significant decline, losing around 7% of its value. Other major cryptocurrencies, such as Solana (SOL) and XRP, also experienced a downtrend, with losses ranging from 3% to 7%.

The crypto market as a whole lost approximately 5% of its value, with the total market capitalization dropping to $2.79 trillion. Additionally, the total market volume decreased by 19% to $153.54 billion. Over $700 million in liquidations were recorded in the past 24 hours, according to Coinglass data, indicating a broad-based market sell-off.

Bitcoin's market dominance increased by 0.34% to 60.38%, suggesting that altcoins faced more volatility compared to the flagship cryptocurrency. Ethereum's market dominance slipped by 10% on the day, reflecting the broader market sentiment.

While some cryptocurrencies, such as Kaito (KAITO), Story (IP), and Optimism (OP), managed to gain value despite the market downturn, others, like Bitget Token (BGB), Kaspa (KAS), and Ronin (RON), experienced significant losses. Traders and investors remain cautious about the market's future performance, as global trade tensions continue to escalate, leading to increased whale selling and liquidity setbacks.