Why is the crypto market down today? Trump’s tariffs cause trouble

• The new US tariff for China, Mexico and Canada provokes geopolitical tensions, leading to retaliatory trade restrictions.
• VIX rises by 54 %, indicating an increase in the market fear and risk morale among investors.

The cryptocurrency market took a sudden diving today, Bitcoin [BTC] He slipped into about $ 83,591 and the loss of most of the gains it made after Donald Trump announced plans for the American strategic encryption reserve.

This recession reveals as the financial markets reaction to increasing geopolitical tensions, the newly imposed US trade definitions, and Chinese reprisals against American companies.

Customs tariff problem: Was it an inevitable crash?

Trump has suggested to the American encryption reserve that he initially sent Bitcoin Above 95,000 dollars, fueled by optimism that official support will enhance the sector.

Also, ads were released Plan To build five semiconductor facilities in Arizona, increasing the total TSMC investments in the United States to $ 165 billion, and generating “hundreds of billions of dollars” in economic activity.

Investors saw this as a sign of the strong government’s support for the technology and encryption sectors, which drives bitcoin prices.

This optimism has faded with just the White House Declare A new tariff for China, Mexico and Canada, which increased organizational uncertainty and the exacerbation of global economic expectations.

When Trump confirmed a 25 % tariff on Canadian and Mexican goods, Canadian Prime Minister Justin Trudeau promised a strong response, and Canada soon took revenge by imposing about $ 25 billion in US imports.

Trudeau issued a strong, confirmed statement,

“Canada will not let this unjustified decision not to be done.”

On the fourth of March, China added 15 American companies to the export monitoring list, limiting the flow of critical technologies for those companies and referring to a new round of commercial friction.

How bad is?

Investor concern about these policies ripple Through stock markets. On the third of March, the S&P 500 lost 1.8 %, while Nasdak sank 9 % from the December summit.

Dow Jones briefly fell from 1100 points after getting 300 points earlier that day.

Technology and periodic shares of the consumer Confrontation The heaviest losses, with NVIDIA 9.46 % slide, Broadcom lost approximately 6 %, and microsoft decreased 2.41 %. Amazon and Tesla also decreased more than 3 %.

During these disorders, the VIX index-which was called the “Fear scale”-was arrested-54 % since mid-February, reflecting the deep concern about the impact of commercial policy and organizational transformations.

It is not surprising, the slide in the stocks turned into cryptocurrencies where the merchants reduced exposure to the most dangerous properties.

Trump’s second announcement of March Strategic reserve for encryption It will include bitcoin, ethereum [ETH]And Altcoins initially ignited an increase in digital assets.

Bitcoin raced up to $ 95,000 before Rally Steam lost, and decreased to $ 86334.49 on Monday, a decrease of 8.31 % of its peak at the weekend.

Ethereum, which also gained momentum, reversed the path and spread a decrease of 14.88 %.

The increasing concerns of economic slowdown added pressure. Total GDP in ATLANTA FEDERAL Reserve Climate For the first quarter of 2025 decreased dramatically from +3.9 % to -2.8 % in just one month.

This sharp decline indicates the aggravation of economic expectations.

As a result of negative economic expectations, investors seek safer investments, such as Treasury bonds for 10 years. This increased demand has paid the treasury return for 10 years to 4.178 %.

The combination of economic slowdown and a significant decrease in the forecast of GDP led to uncertainty in the market and investors resulted in safer assets.

Once high, sink now

By the fourth of March, during the time of the press, Bitcoin fell to 83,925.46 dollars, and ending the last height. The Exchang Netflows, which is the process of moving metric bitcoin inside and outside the trading platforms, highlighted a shift in trading behavior.

From the second of March to the third of March, the flows of more than 2000 BTC suggested every day accumulated by long -term holders.

However, Netflows turned into positive on the fourth of March, indicating that some investors were returning bitcoin to stock exchanges, and perhaps to lock profits or guarding from low prices.

Cryptoquant’s consuming profit ratio supported this trend, decreasing from 1.0106 on March 2 to 0.994 on the fourth of March.

This transformation indicates that merchants who have gained from a brief gathering are now coming out of less than their initial entry points.

What do merchants feel?

The market’s feeling deteriorated quickly, and the fear and greed index sank to 15. This reflects the “extreme fear” similar to previous market accidents. In these accidents, situations and panic are sold to sell in -depth losses.

Coinglass data Show 297,653 traders have been filtered in the past 24 hours, which led to $ 1.01 billion in liquidation. The most important was the liquidation of $ 13.4 million on BitFinex.

The turmoil also drew the attention of political observers.

Ki Young Go, CEO of Cryptoquant, Described How does the United States government seem to be treated with the cryptocurrency as a political political tool,

“The encryption market has become an increasingly weapon for the United States. Since Trump’s election, comprehensive ethical standards have decreased. Now, if there is something that benefits Trump and serves national interests, this is no longer considered illegal.”

Where do we go from here?

In general, the decline in the encryption market can be tracked to many interlocking factors: geopolitical uncertainty, enormous reviews, and quickly changing investor address.

The introduction of the new customs tariffs on China, Mexico and Canada has decreased the decrease in the stock market and was provided with digital assets.

With the Fear & Greed index in 15 and references that exceed one billion dollars, the environment remains reserved.

While Bitcoin hovers about 83,400 dollars, traders are closely monitoring if the market finds stable or heads of a deeper decline.

The coming days will be very important in determining whether this decline is a brief correction or start of prolonged contraction.