Bitcoin has fallen below $85,000, extending its sharp decline as traders react to U.S. President Donald Trump’s announcement of new tariffs on European imports. The cryptocurrency market has suffered significant losses following this policy update.
Market Impact of Trump’s Tariff Announcement
During his first cabinet meeting on February 26, President Trump reiterated his intention to impose a 25% tariff on European Union goods. According to The Guardian, this policy move has triggered widespread concern among investors, leading to a steep decline in digital asset valuations.
At press time, Bitcoin is down 4% in the last 24 hours, trading at approximately $84,600. The broader crypto market has also declined, with total market capitalization shrinking by 4% after Trump’s remarks, as reported by CoinGecko.
Heavy Liquidations and Institutional Withdrawals
The crypto market has witnessed massive liquidations, with CoinGlass data indicating that over $765 million was wiped out in the past 24 hours. This follows the $1.5 billion in liquidations recorded on February 25, exacerbating market instability.
Institutional investors have also demonstrated a shift in sentiment. SoSoValue data reveals that Bitcoin ETFs saw their largest one-day withdrawal since their inception, with $937.78 million in outflows on February 25. This brings the total outflows over the past week to nearly $1.5 billion, further dampening confidence in the digital asset sector.
Bitcoin’s 20% Decline Under Trump’s Presidency
Since Trump took office in January, Bitcoin has dropped approximately 20% from its all-time high of $109,225. Initially, optimism surrounding a more favorable regulatory environment boosted market momentum. However, as the administration prioritizes aggressive trade policies, hopes for swift pro-crypto reforms have dwindled, fueling the current sell-off.
Additional Market Pressures
Beyond trade concerns, security issues have further shaken investor sentiment. The collapse of the Solana memecoin boom has drained market liquidity, while fears over centralized exchange vulnerabilities remain high following the unresolved $1.4 billion Bybit hack.
Some analysts view the recent correction as a natural market reset. However, others warn that if Bitcoin dips below $80,000, another wave of liquidations could push prices toward $70,000. As macroeconomic uncertainties persist, traders remain cautious, awaiting potential regulatory shifts that could restore confidence in the digital asset market.
