Crypto Crash: Trade War Tariffs Wipe Out $760 Billion in Hours

Major Coins Plummeted to 25% of Their Value in Light of a Trade War

In a sudden turn of events, major cryptocurrencies have experienced a significant drop in value, with some coins losing up to 25% of their worth. This dramatic decline can be attributed to the escalating trade war between the United States and its major trading partners, including Canada, Mexico, and China.

The US President's decision to impose 25% tariffs on imports from Canada and Mexico, along with a 10% tariff on Chinese goods, has sent shockwaves through global markets. The crypto market, which has historically been correlated with risk assets, has not been spared from the fallout.

The Bitcoin (BTC) price tumbled to its lowest levels since January 13, nearing $90,000, as investors witnessed a significant liquidation event. Billions of dollars were wiped off the market in a matter of hours, with the crypto market cap falling by as much as 21% over three days, totaling a reduction of $760 billion.

Analysts are closely monitoring the situation, with some predicting a potential bottom for Bitcoin. The short-term holders' cost basis, or the average price at which recent Bitcoin purchases were made, is being closely watched as a potential support level. This figure stood just below $92,000 as of February 2, according to data from Glassnode.

Market sentiment has taken a hit, with the Crypto Fear & Greed Index plummeting over 30 points in just three days, indicating a strong return of fear among investors. This sentiment is echoed in traditional markets, where the Fear & Greed Index also indicates a prevailing sense of fear.

Financial author and investor Robert Kiyosaki has urged investors to seize the moment as Bitcoin plummets following US President Donald Trump's newly imposed tariffs. He called the current market drop an excellent opportunity for those looking to build wealth, stating that "the best assets in the world are going on sale. Millions will lose their jobs. This is the best time to get rich. Do not be a loser. Stay cool. Take care."

President Trump's new tariffs have rattled both crypto and traditional markets. Crypto stocks, including US-listed Coinbase (COIN)