Bitcoin fell below $91,000 for the first time since November, amid weak demand for digital assets. The cryptocurrency market turned bearish after U.S. President Donald Trump confirmed plans to impose tariffs on Canada and Mexico starting in March.
The decline in Bitcoin mirrored losses in traditional markets, with the S&P 500 dropping 2.3% and the Nasdaq Composite falling 4%. Ethereum also saw a sharp 11% drop, reaching $2.4K after last week’s $1.4 billion theft from crypto exchange Bybit.
The total market capitalization of crypto assets plunged by 8%, wiping out over $220 billion in a day and bringing the total below $2.9 trillion. The market is now at its lowest point since mid-November, erasing gains made since Trump’s election victory.
According to CoinGecko, Bitcoin lost over 4% in 24 hours, reaching its lowest point in months. Coinglass data revealed that 284,555 traders were liquidated, totaling $884 million in losses. The largest single liquidation order occurred on Bitmex’s XBTUSD pair, worth $10 million.
Trump’s tariff announcement coincided with the market downturn. His proposed 25% tariffs on Canada and Mexico have raised concerns about inflation, which could impact consumer spending and investment in crypto.
Solana suffered the worst decline among major altcoins, losing nearly half its value since peaking in January.
The crypto market’s lack of momentum suggests continued consolidation, with many assets struggling to sustain breakouts. The overall cryptocurrency market collapsed by 8%, from over $3.31 trillion to approximately $3.09 trillion. If total market capitalization drops below $3 trillion, analysts warn that the current bull cycle could come to an end.
