Bitcoin plunged below $90,000 as U.S. trade tensions spooked investors. Ethereum, Solana, and other altcoins saw steep declines, while market cap and trading volume surged
Crypto Market Takes a Hit as U.S. Trade Tensions Escalate
The cryptocurrency market faced a sharp sell-off on Tuesday, with Bitcoin (BTC) dropping below $90,000, triggering a broader decline across Ethereum (ETH), Solana (SOL), and other altcoins.
📉 Bitcoin & Major Cryptos Plunge
As of 1:04 PM IST, Bitcoin was down 5.4% at $89,626, while Ethereum tumbled 7.7% to $2,498. Solana recorded the steepest fall among the top assets, plummeting 15.5%.
- Global crypto market cap fell 4.7% in 24 hours to $2.98 trillion.
- Bitcoin’s market cap dropped to $1.825 trillion, with a 61.25% dominance.
- BTC’s 24-hour trading volume surged 144.5% to $51.42 billion.
Why is the Crypto Market Crashing?
Investor sentiment turned bearish after U.S. President Donald Trump reaffirmed his plans to impose tariffs on Canada and Mexico and restrict Chinese investments in key sectors.
Additionally, weak U.S. economic data—including sluggish retail sales, declining consumer confidence, and slowing manufacturing and services sectors—further fueled uncertainty, weighing on the U.S. dollar and risk assets like crypto.
Market Experts Weigh In:
“Global markets reacted strongly to Trump’s 25% tariffs on Canada and Mexico, impacting crypto. Inflation concerns and trade disruptions are driving short-term sell-offs, but investor focus should be on how neighboring countries respond.”
— Edul Patel, CEO & Co-founder of Mudrex
“Bitcoin found support near $91,000, while altcoins like Ethereum, XRP, and Solana took a bigger hit. Resistance remains at $96,000, presenting opportunities as BTC starts its recovery.”
— Edul Patel, Mudrex
Altcoins Under Heavy Pressure
The crypto market saw a broad-based correction, with major altcoins posting double-digit losses:
- XRP: 🔻9%
- BNB: 🔻7%
- Solana (SOL): 🔻15.5%
- Dogecoin (DOGE): 🔻12.7%
- Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Stellar (XLM), Litecoin (LTC), and Shiba Inu (SHIB) fell between 6% and 17%.
Security Concerns Add to Market Jitters
Apart from macroeconomic pressures, a major security breach on Bybit further shook investor confidence.
“Bitcoin’s drop to $91,362 signals market uncertainty. Crypto funds saw $508 million in outflows, while Bybit’s mega-breach has heightened security concerns.”
— Avinash Shekhar, CEO of Pi42
What’s Next for Bitcoin & Crypto?
Market analysts suggest that Bitcoin must hold the $92,000 support level to prevent further declines.
“Altcoins remain under pressure, with BNB, XRP, and Ethereum down 6-10%, while Solana plunged 13% amid slowing on-chain activity. Bitcoin holding $92,000 is crucial for market stability, with $90,000 being a key downside target if weakness continues.”
— Vikram Subburaj, CEO of Giottus
While short-term volatility remains high, long-term investors are eyeing potential buying opportunities if Bitcoin stabilizes above key support levels.
Final Thoughts
The crypto market downturn highlights the impact of geopolitical and economic factors on digital assets. While concerns over U.S. trade policies, inflation, and global economic stability continue to drive sell-offs, traders will be watching for Bitcoin’s recovery above $92,000 and altcoin price action in the coming days.
📊 Will Bitcoin bounce back, or is a deeper correction coming? Stay tuned for updates!
