Why Crypto is Down Today? Donald Trump Tariffs Caused a $1B Crypto Liquidation

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Bitcoin is struggling to stay above $100K and currently sinking at $92,000 after a sharp market downturn wiped out nearly $1 billion in liquidations. The overall crypto market lost 7% of its value, triggering massive losses for traders. Though for BTC this is a normal jerk before it hit an all-time high, others are facing a serious condition as to how they will recover from the losses.

Why Crypto Market is Cra shing?

The sell-off came after President Donald Trump confirmed that the U.S. would proceed with tariffs on Canadian and Mexican goods. His statement followed questions about whether the previously agreed pause on tariffs would end next week. Trump claimed that the U.S. had been “mistreated” by its trading partners and that tariffs were moving forward as planned.

As soon as the news broke, Bitcoin’s price dropped below $92,000, leading to widespread panic in the market. According to Coinglass, $918 million worth of liquidations occurred, affecting nearly 300,000 traders. Most of these were long positions, meaning investors betting on Bitcoin’s price increase suffered the biggest losses.

Tariffs and Inflation Could Shape Crypto in 2025

Trump’s policies have shaken the crypto market before, with a similar tariff announcement in February 2025 causing a $2 billion crash. JPMorgan’s latest survey suggests that tariffs and inflation will continue to be major concerns this year. According to Eddie Wen, JPMorgan’s global head of digital markets, investors are reacting sharply to any new policy changes, leading to sudden market swings.

Investors See Buying Opportunity

Despite the price drop, some investors view this as a prime buying opportunity. Michael Saylor, chairman of MicroStrategy, called it a chance to accumulate Bitcoin at a discount. Robert Kiyosaki, the author of Rich Dad Poor Dad, echoed this sentiment, urging investors to buy BTC during market downturns. Meanwhile, analyst James on X noted that since Trump’s second term began on January 20, the crypto market has lost $734 billion—about 20% of its total value.

Top Gainers

Despite overall market outflows, altcoins gained investor interest, with XRP leading the inflows at $38.3 million. Since mid-November, XRP has attracted $819 million in total inflows, driven by optimism over a favorable SEC lawsuit resolution. Other altcoins like Solana, Ethereum, and Sui also saw inflows of $8.9 million, $3.7 million, and $1.47 million, respectively. Meanwhile, Bitcoin faced heavy outflows, with $571 million exiting Bitcoin-focused investment products.

Top Losers

After Bitcoin, Solana took the biggest hit among major altcoins, dropping 6.91% to $158.98 amid broader market sell-offs. Ethereum and Cardano also faced declines of 2.20% and 3.98%, respectively, as competition from alternative smart contract platforms weighed on their performance. Meme coins like Dogecoin and Shiba Inu weren’t spared either, with DOGE down 5.66% to $0.23 and SHIB sliding 4.37% to $0.00001487 due to fading hype and declining trading volumes.