The cryptocurrency market is shaking: Bitcoin and Ethereum fall due to tariff concerns

The cryptocurrency market is shaking: Bitcoin and Ethereum fall due to tariff concerns

The cryptocurrency market is experiencing turbulent times, with Bitcoin and Ethereum plummeting due to growing concerns over the tariff regime in the United States. According to the latest data from CoinGlass, more than 362,000 traders faced liquidations totaling $1.34 billion, underscoring the market's volatility.

On Tuesday, news came from US President Donald Trump, who confirmed that planned tariffs on goods from Mexico and Canada will go ahead as planned from March 4. The announcements, made at a White House press conference, include the imposition of a 25% tariff on goods from both countries and a 10% tariff on Canadian energy resources such as oil, natural gas and electricity. This threat of tariffs added to investor concerns about the stability of global trade, leading to a wave of caution in financial markets, and the cryptocurrency sector was no exception. Bitcoin fell below $90,000, while Ethereum dropped 10% to $2,409.

James Toledano, COO of Unity Wallet, commented on the current situation, pointing out that many investors were expecting a significant rise in Bitcoin prices after Trump's inauguration. However, tariff tensions, ongoing instability in Eastern Europe and concerns about AI disruption of the US tech sector have all contributed to market hesitation. Adding to this, the upcoming elections in Germany are adding to the overall uncertainty.

In the last 24 hours, the market has struggled with extreme volatility. 362,485 traders were liquidated, resulting in a total liquidation of $1.34 billion. Of this, long positions accounted for $1.24 billion, while short positions brought in $97.9 million. The most affected cryptocurrencies were Bitcoin (liquidation of $524.05 million) and Ethereum ($292.30 million), followed by Solana, XRP and Dogecoin.

The market turbulence reflects a combination of macroeconomic uncertainty and panic selling that is intensifying liquidation events across leveraged positions. Further exacerbating sentiment was a major security breach at cryptocurrency exchange Bybit, where $1.4 billion was reportedly siphoned from an Ethereum wallet. This event shook investor confidence and precipitated a sell-off across various assets.

Market sentiment deteriorated significantly. The Crypto Fear & Greed Index, which measures overall market sentiment, dropped to 25 points on February 25, signaling "extreme fear" among traders. This decline suggests that uncertainty over tariffs, security risks and global economic headwinds are creating risk aversion, further pressuring already volatile cryptocurrency markets.

*This is not an investment recommendation.

Coingarage team