Why Is Crypto Market Down Today? $500B Wiped Out as Bitcoin, Ethereum Crash

The crypto market is getting hammered again, with Bitcoin, Ethereum, Dogecoin, and XRP all taking a nosedive. Bitcoin is down 10%, Ethereum has dropped 15%, and XRP has plunged 17% – wiping out billions in value almost overnight.

What’s causing this sudden crash? A mix of Trump’s aggressive tariff policies, growing recession fears, and a major selloff across global markets. But that’s not all – crypto analysts say CME gaps could be playing a big role in Bitcoin’s decline.

Let’s break it all down.

CME Gaps Fueling The Drop?

Crypto analysts believe Bitcoin’s price drop is linked to CME (Chicago Mercantile Exchange) gaps—unfilled price gaps that often get revisited. Analyst Hardy pointed out that Bitcoin filled one gap today but still needs to drop to $85,000 to fill another, with an even bigger gap at $77,900 still open. He believes filling these gaps could clear the path for Bitcoin’s next rally.

Similarly, Titan of Crypto expects a pullback before Bitcoin resumes its climb—something that seems to be unfolding now.

Stock Market Wipes Out $1.5 Trillion

According to The Kobeissi Letter, between 10:00 AM and 3:30 PM ET, the S&P 500 lost $1.5 trillion in market value. The selling started even before Trump’s investment announcement, suggesting traders were bracing for uncertainty.

The announcement began on a positive note, with a Taiwanese semiconductor company pledging a $100 billion investment in the U.S. economy. The move is expected to generate hundreds of billions of dollars in economic activity.

However, optimism faded quickly as Trump confirmed 25% tariffs on Canada and Mexico, starting March 4—contrary to market expectations of another delay.

Adding to concerns, the White House later revealed that Trump had signed an Executive Order increasing tariffs on China to 20%—a significant jump in just two months.

Crypto Market Crashes

Crypto markets plunged sharply as there were no new details on the US Crypto Reserve – causing a $100 billion market wipeout. In just 24 hours, $500 billion in total market cap has vanished in what analysts are calling a massive reversal.

Adding to the chaos, Trump unexpectedly announced that the crypto reserve will include Solana, Cardano, and XRP, rather than just Bitcoin as many had predicted. This surprise move has left investors divided, with some questioning the reserve’s legitimacy.

• Also Read :
•   Hester Peirce Reveals Key Members of SEC Crypto Task Force: Meet the Experts!
•   ,

Ethereum Loses It All!

Ethereum has now erased all of its post-crypto reserve announcement gains. Prior to Sunday’s news, ETH was at $2,170, and it’s now dropped to a new low of $2,094, which is 3.5% lower than before Trump’s announcement. Altcoins like Dogecoin and XRP are falling as they closely follow Bitcoin’s price movements. As of writing, XRP, Solana, and Cardano are currently trading at $2.3, $136.9, and $0.8011, down over 17%, 19% and 24%, respectively in the last 24 hours.

With these new tariffs, the U.S. average tariff rate is set to reach levels not seen since the Great Depression, potentially exceeding 20%. Even more alarming, a possible 100% tariff on BRICS countries could further escalate tensions and disrupt global markets.

Breaking: Trump’s Tariffs Go Live!

In the latest update, Trump’s 25% tariffs on Canada and Mexico and 20% tariffs on China have officially taken effect. In response, Canada has imposed a 25% retaliatory tariff on the U.S.

With the trade war now in full swing, markets are expected to face even more volatility. While risks remain high, traders could also see major opportunities in the coming weeks.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

Subscribe to News

FAQs