President Donald Trump sparked a $300 billion surge into the cryptocurrency market on Monday after announcing the U.S. cryptocurrency reserve.
That same amount of money was then dumped as trade tariffs went into effect on March 4.
The market’s total market cap has fallen by about 14% over the past 36 hours or so, falling to $2.85 trillion from over $3.2 trillion on Sunday evening.
Coinglass reported that over 311,000 traders liquidated in the past 24 hours, totaling just over $1 billion.
Economist Alex Krueger commented on the market on X:
Meanwhile, trader and analyst Don Alt said he expects people are coming to the realization that Trump probably won’t be able to push this through Congress overnight.
Trump said during a White House press conference yesterday, March 3:
Tomorrow, tariffs — 25% on Canada and 25% on Mexico.
He added:
That will start… What they have to do, frankly, is build their car factories and other things in the United States, and then they won’t have tariffs.
Trump also signed an executive order on Monday raising tariffs on imports from China to 20%, up from the 10% previously announced.
The tariffs also weighed on stock markets, with the S&P 500 wiping $1.5 trillion off its market value.
Bitcoin fell to an intraday low of $82,864 during early Asian trading on Tuesday, losing nearly 12% in just over a day.
Meanwhile, Bitcoin’s fear and greed index has fallen back into extreme fear.
The crypto market's decline also closed a massive $10,000 gap in CME bitcoin futures that opened over the weekend when traditional markets were closed.
