Crypto Crash: Bitcoin Drops 10% Amid Trump Tariffs and Recession Fears

The crypto market is experiencing a significant downturn today, with major cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and XRP all taking substantial hits. Bitcoin has fallen by approximately 10%, Ethereum by 15%, and XRP by 17%. The selloff is being driven by a combination of factors, including concerns over President Trump's tariffs and growing fears of a potential recession.

Crypto analysts attribute Bitcoin's price drop to CME gaps. Hardy, a prominent analyst, pointed out that Bitcoin filled one gap today but still needs to drop to around $85,000 to fill another, with a larger gap at approximately $77,900 remaining open. He believes that filling these gaps will pave the way for Bitcoin's next rally. Titan of Crypto also anticipates a pullback before Bitcoin moves up again, which seems to be happening now.

Between 10:00 AM and 3:30 PM ET, the S&P 500 erased a substantial $1.5 trillion in market cap. Notably, the selling pressure began ahead of President Trump's investment announcement. The investment announcement started on a strong note, with a Taiwanese semiconductor company announcing a $100 billion investment in the US, expected to generate "hundreds of billions of dollars" in economic activity. However, President Trump confirmed that 25% tariffs on Canada and Mexico will start tomorrow, March 4th, where markets had hoped these tariffs would be delayed again. Adding to the concerns, the White House announced that President Trump signed an Executive Order raising tariffs on China to 20%, marking a 20% increase in China tariffs over the past two months.

Crypto markets took a sharp dive as no new details on the US Crypto Reserve emerged. Nearly $300 billion was wiped off the market cap, erasing most of yesterday's gains. Trump's announcement that the crypto reserve will include altcoins like Solana, Cardano, and XRP surprised many, who expected only Bitcoin to be included. Mixed reactions are adding to the market crash, as investors question the reserve's credibility.

Ethereum has now erased all of its post-crypto reserve announcement gains. Prior to Sunday's news, ETH was at $2,170, and it's now dropped to a new low of $2,