Crypto Market Crashes Again: What Caused the Price Drop on NFT.EU

Over the past 24 hours, the crypto market has suffered a significant decline, with liquidations exceeding $1 billion. Bitcoin (BTC) dropped below $83,000, while the total market capitalization shrank by $500 billion, returning to pre-rally levels.

Trump’s Global Trade War

The primary reason for the crash is U.S. President Donald Trump officially launching a global trade war, which triggered massive market losses. The Trump administration announced high tariffs on goods from Mexico, Canada, and China, effectively ending negotiations.

New tariffs include:

25% tax on all Mexican imports.
25% tax on Canadian goods (except energy).
10% tax on Canadian energy exports.
20% tariffs on Chinese goods.

In response, Canada imposed reciprocal 25% tariffs on $155 billion worth of U.S. exports.

Following these announcements, Asian tech stocks plummeted:

Advantest (Japan): -9% (lowest since October)
Renesas Electronics: -6.35%
SK Hynix (South Korea): -3.26%
Alibaba: -2.23%
Kingsoft Cloud: -8.46%
BYD (China EVs): -6.60%
SoftBank (Japan): -6.25%
TSMC (Taiwan Semiconductor): -2%

Against this backdrop, Trump also said that Taiwan Semiconductor Manufacturing Company (TSMC) will invest $100 billion in chip manufacturing in the US.

Bitcoin Falls as Gold Rises

Crypto markets took a hit as Bitcoin (BTC) plunged below $90,000, reaching a low of $82,500 — erasing the 10% rally that followed the U.S. crypto reserve announcement.

In the last 24 hours, the crypto market lost nearly $1 billion, with total capitalization down 8.61%. The Fear & Greed Index dropped to 15.

Meanwhile, gold surged by 10%, as investors sought safer assets.

Trump’s Crypto Reserve: Insider Trading Allegations

On Sunday, Trump announced the creation of a U.S. crypto reserve, triggering a market rally — only for prices to crash shortly after.

After Trump’s Truth Social post, 1 billion XRP (~$2.7 billion) was unlocked from Ripple’s escrow account, sparking speculation about potential government acquisitions. Historically, Ripple has regularly sold XRP, profiting from retail investors.

Peter Schiff Calls for Investigation

Gold advocate and crypto critic Peter Schiff called the situation “the largest crypto fraud scheme” and urged Congress to investigate. He raised key concerns:

Who wrote Trump’s post on Truth Social?
Who had advance knowledge of the announcement and traded accordingly?
How much BTC, ETH, XRP, ADA, and SOL was bought before the post, and when were they sold?
Are there ties between Trump’s administration and major crypto investors?

Meanwhile, Samson Mow (CEO of Jan3) warned that including random altcoins in the U.S. crypto reserve could turn it into a speculative disaster. He argued that only PoW assets (BTC, LTC, XMR) should be prioritized.

Market Still in a Bullish Trend

Despite the sharp drop, BitMEX founder Arthur Hayes believes the market remains in a bullish cycle. In his latest essay, he predicted that BTC could fall to $70,000 before rebounding.

CryptoQuant analysts expect a 2-3 month correction, with BTC ranging between $80,000 and $100,000.

What’s Next

According to Bank of America, 42% of investors now see the trade war as the biggest threat to markets in 2025 (up from 30% in January). Meanwhile, only 3% consider Bitcoin the best asset during global conflicts.

Goldman Sachs reports a surge in the volatility index, rising from 1.4 in December to 9.1 in March, indicating potential wild price swings ahead.

With 25% tariffs on the EU coming next, markets could see another wave of panic. The impact on U.S. and global economies remains uncertain, so buckle up!