In a sharp downturn that rippled through financial markets, major cryptocurrencies including Bitcoin, Ethereum, Dogecoin, and XRP experienced significant declines late Sunday, coinciding with President Donald Trump's announcement of fresh 15% global tariffs on U.S. imports. The move, which came after the Supreme Court rejected Trump's earlier bid to use emergency powers for raising import taxes, underscored Congress's constitutional authority over trade policy and taxes, sending shockwaves through investor sentiment.
Bitcoin, the largest cryptocurrency by market capitalization, traded volatilely between the high $65,000s and low $68,000s over the past 24 hours, according to data from market trackers. Trading volume for Bitcoin dipped notably during this period, reflecting waning investor confidence. Ethereum, the second-largest crypto, remained confined to a narrow range just under $2,000, showing low volatility amid the broader sell-off. Meanwhile, XRP and Dogecoin posted sharper 24-hour drops, exacerbating losses across the sector.
The cryptocurrency market saw over $300 million in liquidations in the last 24 hours, with Coinglass reporting that $290 million of that figure came from bullish long positions being wiped out. Bitcoin's open interest fell by 1.85% over the same timeframe, while Ethereum's dipped even more sharply at 4.33%. Despite the bearish signals, a majority of retail and whale investors on Binance remained positioned long on Bitcoin as of late Sunday, highlighting a split in market positioning.
Whale activity painted a mixed picture: investors on Bybit and OKX have turned bearish on Bitcoin, while those on Binance held firm with bullish bets. The Crypto Fear & Greed Index plummeted to a record low of 5, signaling "Extreme Fear" gripping the market and underscoring the panic following the tariff news.
The global cryptocurrency market capitalization stood at $2.31 trillion as of Monday morning, marking a modest 0.57% increase over the previous 24 hours despite the individual asset declines. This slight uptick in overall cap came amid selective top gainers, though the sector as a whole grappled with the tariff-induced uncertainty.
Stock markets echoed the crypto woes, with futures sliding overnight Sunday. As of 7:47 p.m. EDT, Dow Jones Industrial Average futures had fallen 208 points, or 0.42%. S&P 500 futures dropped 0.49%, and Nasdaq 100 futures shed 0.67%, pointing to a rough open for Wall Street on Monday. The tariffs, aimed broadly at global imports, raised fears of retaliatory measures and broader economic slowdowns.
In contrast, safe-haven assets like precious metals bucked the trend. Spot gold rose 0.85% to $5,148 per ounce, while spot silver climbed 2.34% to $86.60 per ounce, as investors sought refuge from the equity and crypto rout.
Trump's tariff announcement followed a Supreme Court ruling that blocked his prior attempt to invoke emergency powers for tax hikes, a decision that reaffirmed legislative oversight on trade matters. The 15% levy on U.S. imports is set to take effect soon, though details on implementation timelines remain fluid, according to White House statements reported late Sunday.
Cryptocurrency analysts wasted no time in dissecting the technical fallout. Ali Martinez, a widely followed trader and analyst, pointed to an emerging pattern on Bitcoin's charts that could signal deeper trouble ahead. "We are now approaching a potential death cross between the 50 and 200 SMAs on the three-day chart, projected to occur in late February," Martinez said in a recent analysis. He added, "Based on prior patterns, a further 30% decline from current levels would place Bitcoin near $40,000."
A death cross, where a short-term moving average crosses below a longer-term one, has historically preceded major sell-offs or prolonged bearish trends in Bitcoin's price cycles. Martinez's projection aligns with the current market fear, though he cautioned that past performance isn't a guarantee of future results.
Other voices in the crypto community offered varied takes. DonAlt, a prominent commentator on X (formerly Twitter), advised caution for aggressive bulls. "I’m not in a rush so I’m waiting for a deeper discount [$42,000] or a market structure shift [above $86,000]," DonAlt posted. He suggested that ideal bullish closes would need Bitcoin to hold above at least $71,000 to regain momentum.
The tariff policy's origins trace back to Trump's long-standing advocacy for protectionist trade measures, which he first championed during his initial presidency. The Supreme Court's rejection of emergency powers earlier this month forced a pivot to more conventional legislative channels, though critics argue the broad 15% tariff could inflate consumer prices and disrupt global supply chains. Supporters, including some in Trump's administration, contend it will protect domestic industries from unfair competition.
Beyond immediate price action, the event highlights cryptocurrencies' growing correlation with traditional markets. Once touted as hedges against fiat instability, assets like Bitcoin now often move in tandem with stocks during macroeconomic shocks. The liquidation cascade, predominantly hitting long positions, wiped out leveraged bets and could deter short-term speculators, potentially leading to prolonged consolidation.
Looking ahead, market watchers will scrutinize upcoming economic data and any retaliatory announcements from trading partners like China and the European Union. The projected death cross in late February looms as a key technical event, while whale positioning on exchanges like Binance may shift if fear persists. For now, the "Extreme Fear" reading on the Fear & Greed Index suggests investors are bracing for volatility, with Bitcoin's path to $40,000 or recovery above $71,000 hanging in the balance.
As the dust settles on Trump's tariff gambit, the crypto market's resilience will be tested. With global capitalization holding steady at $2.31 trillion despite the turmoil, selective opportunities in top gainers persist, but the broader narrative points to caution. Traders and analysts alike await clearer signals from both Washington and the charts to chart the next move in this interconnected financial landscape.