On Sunday and Monday, the cryptocurrency market experienced a veritable upsurge as Bitcoin (BTC) rallied above $90,000, and the total digital assets market capitalization soared back above $3.1 trillion.
The upswing – triggered by President Donald Trump’s latest strategic crypto reserve announcement – proved ephemeral and was cut short by none other than Trump himself.
Specifically, the commander-in-chief announced that the 25% tariffs on Mexico and Canada would go into effect while adding another 10% to the dues already imposed on China.
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The announcement sparked immediate retaliation from affected countries, while America’s southern neighbour announced that a delayed response does not mean one will not come.
Crypto market collapses $400 billion from March highs
Both the cryptocurrency and stock markets reacted violently to the developments, with digital assets wiping over $80 billion from their market capitalization within just 24 hours and crashing $400 billion from their Monday morning highs, per the data Finbold retrieved from TradingView.
Individual coins and tokens also saw their values collapse rapidly. Bitcoin lost $9,205 within 24 hours and is now changing hands at $81,713. Ethereum (ETH) is simultaneously down 11.19% to $2,045, and XRP fell 11.67% to $2.33.
Though cryptocurrencies are, in theory, not linked with factors such as tariffs, they have demonstrated abundantly that they have become highly sensitive to external factors during the 2024 bull market and the uncertain 2025 continuation of the cycle.
Bitcoin’s status as digital gold first became seriously questioned as the world’s premier cryptocurrency experienced a price drop during Operation True Promise 2.0 – Iran’s retaliatory missile strike on Israel in October – and digital assets have suffered from a series of bloodbaths in 2025 on artificial intelligence (AI) and tariff-related developments.
Trump tariffs trigger market-wide wipe
The latest drop extends beyond the cryptocurrency market. Major U.S. stock market indices started the Tuesday session significantly in the red, with the S&P 500 rapidly falling 1.9% and the Dow Jones Industrial Average (DJIA) 1.7%.
Gold, the traditional safe-haven asset, hasn’t been fully spared either. Despite being 0.34% in the green in the last four hours, it is $21 below its Tuesday high as it is changing hands at $2,906 at press time.
Featured image via Shutterstock
