The cryptocurrency market took a severe hit, shedding $300 billion in value after Donald Trump’s new tariffs on China, Mexico, and Canada spooked investors. Bitcoin (BTC) tumbled nearly 10%, while major altcoins like Ethereum (ETH), Solana (SOL), and XRP saw double-digit losses. The sharp downturn erased gains from Monday’s rally, which was fueled by optimism over Trump’s proposed US Crypto Strategic Reserves.

Massive Sell-Off Hits Crypto Market

As of 12:41 pm, Bitcoin was trading at $84,119.28, marking a 9.47% drop from its daily high of $93,600. The broader cryptocurrency market followed suit, with major tokens experiencing steep declines:

• Ethereum (ETH) – Down 11%
• Solana (SOL) – Fell 15%
• XRP – Dropped 12%
• Cardano (ADA) – The hardest hit, plunging 20% to around $0.80

The overall crypto market cap shrank 10%, now standing at $2.77 trillion, reversing all of Monday’s gains, according to CoinMarketCap.

Trump’s Tariffs Shake Global Markets

The sell-off wasn’t limited to crypto—traditional financial markets also suffered. The S&P 500 dropped 2%, while the Dow Jones plunged 650 points in late Monday trading. The market turbulence was sparked by Trump’s announcement of:

• 25% tariffs on imports from Mexico and Canada
• 20% tariffs on Chinese goods (double the previous rate)

China retaliated quickly, imposing 10%-15% tariffs on select US imports, effective March 10, raising fears of an escalating trade war.

Was Trump’s Crypto Rally a Pump-and-Dump?

Trump’s stance on crypto has been inconsistently bullish, but his latest actions have raised eyebrows. Critics argue that the US Crypto Strategic Reserves announcement artificially inflated the market, only for it to collapse after the tariffs news.

Economist Peter Schiff went as far as calling it “the biggest crypto pump-and-dump scheme of all time.” He urged Congress to investigate whether insiders profited from the surge before the inevitable crash.

Uncertain Future for Crypto

With Trump’s tariffs shaking investor confidence and regulatory uncertainty looming over the US Crypto Strategic Reserves, further volatility is likely. Analysts warn that unless clearer policies emerge, the crypto market could face more unpredictable swings in the coming weeks.

For now, investors remain cautious, watching how global markets respond to Trump’s aggressive trade policies and their impact on digital assets.