Étienne Girard
Bitcoin and Ethereum saw a sharp decline today, erasing gains from a recent rally driven by U.S. President Donald Trump’s crypto reserve announcement. Investors are now factoring in weaker macroeconomic data and escalating tariff concerns, leading to a broader downturn in the market.
According to PRIME’s price tracker, Ethereum plummeted 14.7% in the past 24 hours, reaching $2,082, its lowest price since November 2023. Bitcoin also tumbled 10%, trading at $83,704 at the time of writing. The Block’s GMCI 30 index, which monitors the performance of the top 30 cryptocurrencies, fell 14%.
Peter Chung, head of research at Presto Research, commented on the market reversal: “Crypto bulls lost momentum quickly as weak economic indicators and Trump’s tariff stance dragged risk assets lower. February’s ISM PMI report showed employment and new orders dropping below 50, while prices surged. Additionally, the Atlanta Fed’s GDPNow model projected -2.8% real GDP growth for Q1, heightening recession concerns.”
Trump’s Tariff Policies Fuel Market Sell-Off
Investor sentiment took another hit as Trump reaffirmed his commitment to 25% tariffs on imports from Canada and Mexico, set to take effect on Tuesday. Additionally, a 10% tariff increase on Chinese imports will raise the total rate to 20%.
“Trump’s aggressive stance on tariffs against key trading partners is amplifying risk-off sentiment across global markets,” Chung added.
Kevin Guo, director of HashKey Research, echoed this view, stating that Trump’s tariff policies were the primary driver behind the crypto market’s downturn. “The sell-off completely erased the previous day’s crypto strategic reserve gains, and with more announcements expected from Trump’s crypto summit this week, further volatility is likely,” Guo noted.
Beyond macroeconomic concerns, some analysts suggest that broader market exhaustion is also at play. Rachael Lucas, crypto analyst at BTC Markets, pointed out: “After a 600% rally since late 2022, we are seeing classic signs of overheating—high funding rates, extreme greed in sentiment indicators, and slowing ETF inflows—all pointing toward a natural cooling-off period.”
Crypto ETFs Experience Outflows Amid Market Uncertainty
The downturn also affected crypto ETFs, with U.S. spot Bitcoin ETFs seeing $74.19 million in net outflows on Monday, following $94.34 million in inflows last Friday, according to SoSoValue data. Ethereum ETFs in the U.S. continued their losing streak, recording $12.1 million in withdrawals, marking their eighth consecutive day of outflows.
With ongoing economic concerns, trade tensions, and shifting regulatory landscapes, crypto markets remain in a highly volatile phase, leaving investors closely watching upcoming developments from Trump’s crypto summit.
