Crypto Crash: Trump Tariffs Spark 8% Market Drop

Cryptocurrency markets experienced a significant downturn on Monday, with Bitcoin, XRP, and Dogecoin leading the decline. The broader crypto market witnessed an 8% drop over the past 24 hours, as investors grappled with the reality of President Donald Trump's trade tariffs and inflation fears, which overshadowed the short-lived hype surrounding the U.S. amassing cryptocurrencies.

Bitcoin, which had surged to around $94,000 earlier in the day, fell to a current price of $87,300, marking a 6% decrease over the last 24 hours. Other top assets named by Trump for the planned U.S. crypto reserve, including Ethereum, Solana, XRP, and Cardano, also experienced significant declines. Ethereum is now trading at $2,192, XRP at $2.47, Solana at $148, and Cardano at $0.90.

Dogecoin, which was not included in Trump's reserve plans, also saw a rise on Sunday but has since fallen by 9% to a current price of $0.206. The volatile market action resulted in $661 million worth of liquidations of futures positions over the last day, with $517 million of those being longs. Bitcoin led the pack with $220 million worth of liquidations, followed by Ethereum at $131 million. Solana, XRP, and Cardano made up the rest of the top five.

The crypto market's decline may also be aligned with the performance of stocks on Monday, as the Dow, S&P 500, and Nasdaq all experienced losses amid concerns over the impact of Trump's trade tariffs and inflation fears. Top AI stock Nvidia also saw a decline of more than 6% on the day. Planned tariffs against Canada and Mexico are expected to begin on Tuesday, with additional tariffs set to follow against China.