Crypto Crash: Trump Tariffs Spark Panic, Bitcoin Plunges

Crypto Market Crash: A Deep Dive into the Ongoing Turmoil

The cryptocurrency market has experienced a significant crash, with the total market capitalization plunging to $3.06 trillion from a recent high of $3.8 trillion. Major cryptocurrencies such as Bitcoin, Ethereum, and XRP have suffered sharp sell-offs, triggering widespread liquidations and heightened investor panic.

But what exactly caused this market meltdown? Let's break it down.

Key reasons behind the crypto crash include:

• President Donald Trump's new trade tariffs and economic uncertainty
• Broader market weakness and profit-taking

Trump's announcement of new U.S. tariffs, including a 25% tariff on imports from Mexico and most Canadian products, and a 10% tariff on Chinese goods, has rattled financial markets. Investors fear a prolonged trade war and economic downturn, leading to a sell-off in risk-on assets like crypto.

Additionally, the crypto market has been on a strong uptrend recently, with Bitcoin surpassing the six-figure mark for the first time. However, this rally left the market vulnerable to sharp corrections, especially as traders looked to lock in profits at psychological resistance levels.

According to AMBCrypto's analysis of the market cap chart, there was a strong sell-off after multiple retests of the $3.5 trillion range, suggesting that many traders decided to exit at peak valuations. The inability to sustain momentum at higher price levels triggered a chain reaction of selling across the market.

The Crypto Fear and Greed Index was at 39 (Fear) at press time, a stark contrast from the Neutral 55 recorded last week. The rapid shift in sentiment suggests that investors are becoming increasingly risk-averse amid broader market uncertainties. Fear-driven market conditions have historically led to prolonged downturns as traders rush to protect capital, exacerbating the selling pressure.

The decline in sentiment is evident in the overall market volume, which surged to $306.56 billion, signaling panic-driven exits.

The crypto market experienced an abrupt downturn, with Bitcoin dropping from its recent highs of over $100,000 to an intraday low of $91,