Bitcoin and the wider cryptocurrency market experienced a significant downturn on Monday, with Bitcoin dropping below $92,000 as President Donald Trump reaffirmed plans to impose tariffs on imports from Canada and Mexico. This triggered a widespread sell-off across markets, with Bitcoin hitting a low of $90,850 — its lowest level since Feb. 2.
The broader crypto market also saw major declines, with Ethereum falling 10.61% to $2,523.37, XRP dropping 10.85% to $2.30, and Solana suffering the steepest drop at 14.85% to $143.13. Cardano and BNB also saw significant losses, with Cardano losing 10.96% and trading at $0.6859, and BNB falling 6.55% to $615.13.
The sell-off resulted in nearly $800 million in leveraged positions being liquidated over the past 24 hours, with traders facing margin calls as asset prices plummeted. Long positions accounted for around $600 million, while short positions comprised approximately $200 million.
The sudden downturn highlights the crypto market’s vulnerability to geopolitical and macroeconomic developments. Analysts believe that continued volatility is likely as investors reassess risk in response to shifting trade policies and global economic uncertainty. The evolving tariff situation, along with potential retaliatory measures from Canada and Mexico, could further impact digital asset markets in the coming weeks.
Traders are on edge as they brace for additional market fluctuations ahead of the March 4 implementation deadline. While the crypto market has previously weathered macroeconomic shocks, the combination of regulatory headwinds, security breaches, and liquidation cascades has increased volatility.
At the time of writing, Bitcoin is down 5% over the past 24 hours, with a market capitalization of $1.81 trillion and a 24-hour trading volume of $46.71 billion. The total crypto market is valued at $2.99 trillion with a 24-hour volume of $135.23 billion and Bitcoin dominance at 60.88%.
Overall, the crypto market remains uncertain as traders navigate through geopolitical tensions and economic uncertainties. The recent sell-off serves as a reminder of the market’s sensitivity to external factors and the need for investors to stay informed and prepared for potential fluctuations.