Bitcoin Plunges Below $90K Amid Tariff Uncertainty

Bitcoin's price plummeted this week, breaching a crucial support level at $90,000 and erasing most of the gains accumulated during the post-election rally that began in November 2024. The total cryptocurrency market capitalization dropped by approximately 13% to $2.91 trillion, with market sentiment plunging into extreme fear territory, a level last seen in June 2022.

Most altcoins succumbed to market pressures, posting significant losses. The total altcoin market cap fell by roughly 10% to $1.19 trillion, with the Altcoin Season Index slipping to a yearly low of 21. Among the top 99 tokens by market cap, Story (IP) was the only cryptocurrency to maintain significant gains, rising by 17.4% during the period.

The recent sell-off in the crypto market comes amid growing macroeconomic concerns, with Bitcoin and other cryptocurrencies reacting to fresh US tariff policies targeting China, Mexico, and Canada. On February 27, President Trump announced an additional 10% tariff on Chinese goods, bringing the total to 20% starting March 4. He also confirmed that 25% tariffs on Canadian and Mexican imports will take effect the same day. The uncertainty surrounding these tariffs has rattled risk assets, including crypto, leading to outflows of about $3.65 billion from spot ETFs.

With poor macro conditions and investor sentiment at its lowest in nearly two years, Bitcoin's price remains under pressure. Traders are closely watching key support levels for signs of stability. The general consensus among experts is that the current downturn would likely continue until the situation cools down on the global level. The next key support level is at $75,000, according to Bitget analysts, while others like Global Macro Investor Raoul Pal expect a deeper correction to $70,000. However, Bitget's Ryan Lee notes that such a scenario is less likely without any new bearish catalysts in play.

Meanwhile, well-followed analyst Rekt Capital said Bitcoin is in its first price discovery correction, and the current scenario could last another couple of weeks if historical patterns repeat. He noted that while the ongoing 25% drawdown is milder compared to past cycles, its duration is aligning