Crypto Market Bleeds $80B in 24 Hours as Trump's Tariffs Spark Global Retaliation

The cryptocurrency market experienced a significant downturn on Monday, with a total of $80 billion wiped off its market capitalization in just 24 hours. This dramatic crash came after a brief upsurge over the weekend, during which Bitcoin (BTC) rallied above $90,000 and the total digital assets market capitalization soared back above $3.1 trillion.

The market's rapid decline was triggered by an announcement from President Donald Trump, who revealed that 25% tariffs on Mexico and Canada would go into effect, while adding another 10% to the dues already imposed on China. This news sparked immediate retaliation from affected countries and a swift response from the cryptocurrency market.

The market capitalization of digital assets plummeted by over $80 billion within 24 hours, and the total market value crashed by $400 billion from its Monday morning highs. Individual coins and tokens also saw their values collapse rapidly. Bitcoin lost $9,205 within 24 hours and is now trading at $81,713. Ethereum (ETH) is down 11.19% to $2,045, and XRP fell 11.67% to $2.33.

While cryptocurrencies are theoretically not linked to factors such as tariffs, they have shown a high degree of sensitivity to external factors during the 2024 bull market and the uncertain continuation of the cycle in 2025. This latest drop is not an isolated incident; digital assets have suffered from a series of bloodbaths in 2025 on artificial intelligence (AI) and tariff-related developments.

The impact of Trump's tariffs extends beyond the cryptocurrency market. Major U.S. stock market indices started the Tuesday session significantly in the red, with the S&P 500 falling 1.9% and the Dow Jones Industrial Average (DJIA) 1.7%. Gold, the traditional safe-haven asset, has also been affected, although it remains 0.34% in the green in the last four hours, trading at $2,906 at press time.