Bitcoin Falls 10%, Solana Crashes 20%: Why Is Crypto Market Down Today?

A day after the cryptocurrencies skyrocketed following US President Donald Trump revealed the US Crypto Strategic Reserves, Bitcoin plummeted on Tuesday by nearly 10 per cent

Bitcoin price dropped 9.47 per cent in the last 24 hours after the cryptocurrency fell below the $80,000 mark on Tuesday. The cryptocurrency market reacted negatively to scepticism over the implementation and regulatory approval of the US Crypto Strategic Reserves and on Trump Tariffs that have intensified economic uncertainty.

The price of Bitcoin stood at $84,119.28 with a current market cap of $1,668.25 billion, as of 12:41 pm. The 24-hour trading volume was $76.75 billion. Bitcoin is -9.47 per cent in the last 24 hours with a circulating supply of 19.83 million.

As for what happened: A day after the cryptocurrencies skyrocketed following US President Donald Trump revealed the US Crypto Strategic Reserves, Bitcoin plummeted on Tuesday by nearly 10 per cent and other cryptos fell by up to 20 per cent.

Tracking the movements in the crypto market, Avinash Shekhar, co-founder and CEO, Pi42 said, “The crypto market experienced extreme volatility following former President Donald Trump’s announcement of a US Crypto Strategic Reserve, initially driving Bitcoin, Ethereum, and other major tokens higher. However, gains were short-lived as scepticism over implementation and regulatory approval led to sharp corrections. Adding to the turbulence, Trump’s proposed tariffs against China intensified economic uncertainty, triggering a broader market sell-off.”

The market also witnessed crypto fund outflows as another factor weighing on prices, reflecting cautious investor sentiment, he further added.

“While the idea of a government-backed crypto reserve stirred optimism, market reactions highlighted the sector’s sensitivity to policy shifts and the need for clearer regulatory frameworks,” said Shekhar.

According to CoinSwitch Markets Desk, all the gains BTC and crypto made one day before was washed out entirely as BTC struggled to find support even at $82,000, a straight fall from last day’s high i.e. $95,000, causing more than $1 billion worth of liquidations as ETH and other crypto are falling sharply as well.

However, this is not the only market which is acting brutal towards its investors – with Trump confirming tariffs on China and Mexico to be started by March 4th caused S&P 500 to crash by more than 2% in point in the day.

On the other hand, SEC continues to drop its lawsuits against crypto players with Kraken and Yuga Labs being recently added to the list, said CoinSwitch Markets Desk.

Also Read: Donald Trump May Impose Tariffs On Goods From Mexico, Canada And China

The US president on Tuesday imposed new 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20%.

In response, China has announced that it will impose additional tariffs of 10%-15% on certain US imports from March 10, raising concerns over global trade war.

The development comes after Trump announced on Sunday that he is putting together a "digital asset" reserve to stabilize the U.S. dollar.

"I am announcing that I am ordering the Treasury to begin working with the Federal Reserve and members of Congress to create a new digital currency, pegged to the dollar, to be called the 'UnionCoin,' " Trump said in a statement.

The news comes as Bitcoin recently fell below $80,000 amid Trump Tariffs after hitting its all-time high of $109,350 in January. However, after Trump’s announcement on Sunday on the crypto reserve boosted the world’s biggest crypto with Bitcoin crossing above $94,000.