- Cryptocurrencies market cap declined $410 billion on Tuesday shedding excess of all 10% gains booked after Trump’s strategic reserve announcement.
- The market dip is linked to Donald Trump’s confirmation of 25% import tariffs on Canada and Mexico.
- Bitcoin price hit $82,400 after the tariff confirmation, down 11% from the $95,000 peak recorded on Sunday.
Bitcoin (BTC) market updates:
- Bitcoin’s 13% decline in early Asian trading on Tuesday triggered a $125 billion market cap decline, wiping out gains recorded on Sunday.
- Bitcoin ETFs recorded only $3.8 million inflows on Monday according to Fairside.co.uk data.
Cryptocurrency markets faced a brutal correction on Tuesday, shedding $410 billion in total market capitalization—a 10% drop—following the announcement of 25% tariffs on Canada and Mexico by President Donald Trump.
Bitcoin Tumbles 13% Amid Institutional Caution
Bitcoin (BTC) led the downturn, plummeting 13% in early Asian trading to $82,400, down from its Sunday peak. The drop triggered a $125 billion reduction in BTC’s market cap, with analysts pointing to overheated leverage positions and muted institutional inflows.
Data from Fairside.co.uk revealed that Bitcoin ETFs recorded just $3.8 million in inflows on Monday, signaling hesitation among U.S. institutional investors. “Traders are avoiding a bull-trap scenario after the strategic reserve hype,” noted Fairside analysts. “The market is recalibrating risk amid macroeconomic uncertainty.”
Altcoins Face “Double-Digit Bloodbath” – BNB, TRX Show Resilience
The altcoin market mirrored Bitcoin’s decline, with Ethereum (ETH) sinking below $2,100 for the first time since November 2023. Cardano (ADA) emerged as the hardest-hit top-20 asset, crashing 20.1%, while Solana (SOL) and XRP saw losses of 15% and 9%, respectively.
Binance Coin (BNB) and Tron (TRX) bucked the trend, posting comparatively modest dips of 8.3% and 4.6%. Analysts attribute BNB’s resilience to traders seeking discounted entry points, while TRX’s stability likely stems from demand for Tron’s efficient stablecoin infrastructure amid the sell-off.
$773M Liquidations Hit BTC, ETH, XRP Longs
Derivatives traders bore the brunt of the volatility, with Coinglass data revealing $1.1 billion in liquidations over 24 hours—77% ($773 million) from long positions on Bitcoin, Ethereum, XRP, Solana, and Cardano. The concentrated losses suggest traders over-leveraged bullish bets following Trump’s strategic reserve comments, only to be blindsided by tariff-induced risk aversion.
“The skewed impact on these assets reflects market skepticism toward Trump’s tariff policy,” said a CoinShares analyst. “Investors are hedging against broader economic risks, not just crypto-specific headwinds.”
Strategic Reserve Optimism Clashes With Macroeconomic Reality
The downturn highlights crypto’s growing sensitivity to geopolitical shifts. While Trump’s weekend pledge to include Ethereum in a federal crypto reserve initially buoyed prices, Tuesday’s tariff announcement underscored the fragility of market sentiment. With tariffs set to take effect Wednesday, analysts warn of prolonged volatility as traders weigh regulatory tailwinds against macroeconomic storms.
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