Bitcoin struggles to stay above $100K, falling to $92,000 after a sharp market downturn wiped out nearly $1 billion in liquidations, resulting in a 7% loss for traders.
Crypto Market Collapse
The sell-off commenced following President Donald Trump's announcement of tariffs on Canadian and Mexican goods. This news caused panic, dropping Bitcoin's price below $92,000. Liquidations worth $918 million affected nearly 300,000 traders, most of whom were long positions.
Tariffs and Inflation's Impact in 2025
Trump's policies have previously shaken the crypto market, notably with a $2 billion crash announcement in February 2025. JPMorgan's survey indicates tariffs and inflation remain major concerns. Eddie Wen from JPMorgan noted that investors react sharply to policy changes, leading to market swings.
Investors' Reaction to the Drop
Despite the price drop, some investors see this as a prime buying opportunity. Michael Saylor, chairman of MicroStrategy, called it a chance to accumulate Bitcoin at a discount. Robert Kiyosaki, author of 'Rich Dad Poor Dad', echoed the sentiment of buying BTC during downturns. Analyst James noted that since Trump’s second term began, the crypto market has lost $734 billion — about 20% of its total value.
Although the crypto market is facing turbulence due to the US tariff policy changes, many investors still believe in its long-term potential and view the current conditions as a chance for beneficial purchases.
