Trump's Tariffs Spark $2B Crypto Bloodbath, Bitcoin Plunges to $92K

Cryptocurrency markets experienced a significant downturn on February 1, 2025, following President Donald Trump's announcement of new tariffs targeting China, Mexico, and Canada. The news sparked a risk-off sentiment among investors, leading to a broad sell-off in the crypto market.

Bitcoin (BTC), the world's largest cryptocurrency, fell by over 5% in the 24 hours following the announcement, reaching a low of approximately $91,200 before rebounding to around $94,000. Despite the recovery, BTC remains roughly 13% below its all-time high of $109,000, and trading volume has surged by more than 200%, indicating considerable selling pressure or market panic.

The overall global crypto market cap dropped nearly 12% during the same period, settling at about $3.15 trillion. Following President Trump's inauguration on January 20, Bitcoin and other altcoins saw a significant price increase. However, recent developments, including new tariff policies, have contributed to a drastic decline in market sentiment and asset values.

The cascading effect of Bitcoin's price crash has been felt across the altcoin market. In the last 24 hours, Ethereum (ETH) has fallen by nearly 20%, Ripple (XRP) by 22%, Solana (SOL) by 8%, and Binance Coin (BNB) by over 15%.

Rising trading volume alongside price dips often signals strong selling pressure or market panic, as more traders offload their assets. This pattern suggests that long-term investors are now selling their coins at lower profits than their purchase price—or even at a loss year-to-date—as illustrated by the Bitcoin: Long Term Holder SOPR chart.

Such behavior often indicates capitulation among long-term holders, a phenomenon common during bearish market trends and corrections. Experts, including BitMEX CEO Arthur Hayes, have even warned that a “financial crisis” may be on the horizon.

New Trump tariffs stoke inflation fears, trigger $2 billion in crypto liquidations, Bitcoin crashes to $92K

Crypto market liquidations surged to $2 billion as Bitcoin dropped to its lowest level since early January, following President Trump’s announcement of new tar