The sharp downturn was triggered by Trump’s sweeping tariffs on China, Mexico, and Canada, which rattled financial markets and sparked a global sell-off. Investors, already wary of regulatory hurdles surrounding Trump’s crypto reserve initiative, now face mounting economic uncertainty.
As of 12:41 pm, Bitcoin was trading at $84,119.28, with a market cap of $1.67 trillion and a 24-hour trading volume of $76.75 billion. Over the past 24 hours, BTC has dropped 9.47%, sliding from a daily high of $93,600 to a low of $83,300.Other major cryptocurrencies also faced steep declines:
Ethereum (ETH): Down 11%
Solana (sun): Plunged 15%
XRP: Fell 12%
Cardano (there): Monday’s top performer, now the hardest hit, crashing 20% to trade near $0.80, according to CoinMarketCap data.
Also read: Trump’s Crypto Tamasha: Why India shouldn’t fear missing out
The overall cryptocurrency market capitalisation has fallen 10%, now standing at $2.77 trillion, erasing Monday’s gains.Trump’s tariffs roil markets
The crypto crash coincided with a sharp downturn in US equities. The S&P 500 slid 2%, while the Dow Jones plunged 650 points in the final hours of Monday’s session. The trigger? Trump’s new 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20%.
China responded swiftly, announcing 10%-15% tariffs on select US imports, effective March 10, reigniting fears of a global trade war. Risk-averse investors rushed to offload stocks and crypto, bracing for further economic turbulence.
Was Trump’s crypto boom a pump-and-dump?
While Trump has positioned himself as the ‘crypto-friendly President,’ analysts are questioning whether his latest moves amount to market manipulation. Critics argue that his crypto reserve announcement triggered an artificial rally, allowing insiders to cash in before the inevitable crash.
Economist Peter Schiff minced no words, accusing Trump of orchestrating “the biggest crypto pump-and-dump scheme of all time.”
Donald Trump, the first crypto President, just helped pull off the biggest crypto rug pull of all time. A Congressional investigation is now warranted to find out the following regarding this pump and dump scheme.
Who authored the two Sunday afternoon posts on the President’s…— Peter Schiff (@PeterSchiff) March 3, 2025
“A Congressional investigation is now warranted to find out how insiders exploited Trump’s strategic crypto reserve announcement for massive profits,” Schiff said.
Bitcoin, which briefly soared past $94,000 following Trump’s Sunday announcement, has since erased all those gains, now trading well below its pre-announcement levels.
With Trump’s tariffs shaking global trade, crypto’s near-term outlook remains uncertain. If regulatory approval for the US Crypto Strategic Reserves faces roadblocks, further volatility is likely. For now, investors are bracing for what could be one of the most unpredictable chapters in the history of cryptocurrency markets.
