As Bitcoin plummeted below $96,000 and the broader crypto market dipped under $3 trillion, investors found themselves in familiar territory—panic mode. Over $950 million vanished in liquidations across global markets, making this the largest single-day wipeout in crypto history. Bigger than COVID. Bigger than FTX. Yeah, that big.
When crypto crashes, it doesn’t just dip—it nosedives spectacularly, leaving billion-dollar liquidation trails in its wake.
The culprit? Trump’s sudden tariff announcement targeting Canada, Mexico, China, and the EU sent shockwaves through financial markets. Stocks tanked. The S&P 500 dropped 2%. And crypto, ever the dramatic teenager of financial assets, responded with an even bigger meltdown. Experts advise against using high leverage during such volatile market conditions. The correlation between traditional markets and digital assets? Still alive and kicking, apparently.
Altcoins got absolutely hammered. RAY crashed 30%, while LDO and BONK tumbled 18% and 17% respectively. Even the TRUMP token dropped 16%—ironic, considering whose policies triggered the chaos. The market cap briefly dipped below $3 trillion before recovering slightly to $3.22 trillion, still far from its November 2021 highs. These steep declines follow historical patterns as altcoins typically experience more dramatic price swings than Bitcoin during market downturns.
Institutional players weren’t helping matters. MicroStrategy reportedly halted its Bitcoin buying spree, while rumors swirled about Scimitar Capital dumping $2 billion in altcoins. So much for institutional stability, right? The reduced trading activity across exchanges signals a typical bear market pattern.
Meanwhile, the global economic picture grew increasingly bleak. The US dollar surged as investors fled to safety, while gold hit all-time highs. The Canadian dollar crashed to its lowest level since 2003, with the Mexican peso following suit. Inflation concerns intensified.
Some believers are still clinging to hopeful narratives. Robert Kiyosaki predicts Bitcoin will “explode” after a stock market crash. Others view this as a buying opportunity. But the immediate outlook remains grim, with analysts warning of further losses if Bitcoin breaks below $90,000.
For now, the crypto market remains on edge. The Strategic Bitcoin Reserve plan hangs in uncertainty. The Bybit exchange breach hasn’t helped confidence. And investors are once again learning that in crypto, what goes up must come down—usually faster than it went up.
