• Bitcoin dropped below $92K, triggering over $2 billion in liquidations as fear gripped the market.
• Trump’s new trade tariffs and shifting investor sentiment fueled uncertainty, leading to a sharp crypto sell-off.

The cryptocurrency market suffered a significant crash today, with the total market capitalization plunging to $3.06 trillion from a recent high of $3.8 trillion.

Bitcoin [BTC], Ethereum [ETH], and other major cryptocurrencies experienced sharp sell-offs, triggering widespread liquidations and heightened investor panic.

But what exactly caused this market meltdown? Let’s break it down.

Key reasons behind the crypto crash

Trump’s new trade tariffs and economic uncertainty

One of the primary catalysts behind today’s crash is President Donald Trump’s announcement of new U.S. tariffs. These include a 25% tariff on imports from Mexico and most Canadian products, and a 10% tariff on Chinese goods. 

These policies have rattled financial markets, with investors fearing a prolonged trade war and economic downturn. Traditional markets also reacted negatively, with the Australian dollar hitting its lowest level since the pandemic.

As global financial instability increases, risk-on assets like crypto tend to suffer, leading to sharp declines.

Broader market weakness and profit-taking

The crypto market has been on a strong uptrend recently, with Bitcoin surpassing the six-figure mark for the first time.

However, this rally left the market vulnerable to sharp corrections, especially as traders looked to lock in profits at psychological resistance levels. 

AMBCrypto’s analysis of the
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Author: Adewale Olarinde