The crypto market moved down after Trump confirmed tariffs on Canada and Mexico, causing massive liquidations and highlighting Bitcoin’s sensitivity to policy. After Donald Trump’s confirmation, the crypto market faced a sharp downturn.
As Bitcoin’s price dropped, the market saw a billion-dollar loss. Similarly, ZachXBT, a cryptocurrency investigator, found that many meme coins launched on Salona’s pumpfun are linked to certain organizations that validate.
President Donald Trump’s subsequent announcement that the United States will impose tariffs on Canada and Mexico caused Ripple’s XRP to go down nearly 13 Percent on Tuesday. After initially halting the tariffs, both nations were unable to reach a conclusion with the US government.
During a White House press conference, President Donald Trump said he anticipates tariffs on Canada and Mexico to begin in March. According to Donald Trump, the tariffs are proceeding according to plan. Goods from both countries are subject to a 25 percent tariff, while Canadian energy resources such as electricity, natural gas, and oil are subject to a lower 10 percent tariff.
The cryptocurrency market fell by approx 8%, with Bitcoin breaking the $92,000 mark, due to the effect of tariffs on international trade. The Cryptocurrency market capitalization has dropped by almost 250 billion dollars because of the decline.
Major Liquidations in Bitcoin, Ethereum and Solona
According to Coinglass data, traders on the futures side are on course to reach a milestone of roughly $2 billion in liquidations led by Bitcoin, Ethereum, and Solana.
According to CoinShares weekly ETF flows data, there were notable withdrawals from Bitcoin investment products last week.
Since the year 2025 started a consecutive second week of loss, last week Bitcoin exchange-traded funds lost 570 million dollars.
CoinShares data that investors may have pulled out money due to different factors, including new tariffs and expectations surrounding macroeconomic data. Despite the market stampede, some investors viewed the dip as a buying opportunity.
Michael Saylor and Robert Kiyosaki encouraged traders to gather Bitcoin during the downturn, calling it a chance to invest at lower prices amid economic uncertainty. Some analysts pointed out that Trump’s policies have erased a significant portion of the crypto market’s value since the beginning of his second term.
BTC Cost Basis Distribution Update!
The last major demand zone sits around $89K-$87K, where a significant number of investors hold their cost basis. Below this, the next major support isn’t until $71K-$72K, meaning there’s a thin liquidity zone where bears could take control.
If $BTC loses this crucial level, we could see accelerated downside movement with weaker support in between.
