Bitcoin took a nasty spill this week, crashing below $80,000 for the first time since November 10, as jitters over President Donald Trump’s tariff threats rattled the crypto market. By Friday’s Asian trading hours, BTC was flirting with $78,200—a 17% drop over the week—dragging the broader crypto scene down with it. The total market cap shed billions, with altcoins like Ethereum and XRP posting even uglier losses, all thanks to a risk-off vibe sparked by Trump’s trade war talk.
The fuse got lit earlier this week when Trump doubled down on his tariff plans, slapping a 25% levy on Canada and Mexico (set to kick in March unless deals change) and tacking an extra 10% on China, announced just yesterday. He’s framing it as a one-two punch against fentanyl trafficking and border security, but markets aren’t cheering. The U.S. dollar’s flexing near multi-week highs, and investors are dumping riskier bets like crypto faster than you can say “trade deficit.” Posts on X are buzzing with tariff panic, some calling it a “risk-off tsunami” as Bitcoin bleeds.
Glassnode’s latest dive pegs this crash as the year’s worst single-day hit—February 26 saw $1.13 billion in realized losses, with newbies who bought BTC in the last week eating $927 million of that pain. Long liquidations topped $765 million in the last 24 hours alone, per CoinGlass, as BTC slipped below its 200-day moving average. Ethereum’s down over 8% to $2,414, XRP’s lost key support, and even Trump’s own meme coin’s tanked 75% from its peak. It’s a bloodbath out there.
Analysts are split. Some, like Bitwise’s Jeff Park, reckon a tariff war could juice Bitcoin long-term by weakening the dollar, but right now, it’s trading like a tech stock on a bad day. Nick Forster from Derive.xyz told FXStreet that inflation fears from these tariffs might keep the Fed’s rates high, squeezing crypto harder for months. Yet CryptoQuant’s spotting a glimmer—stablecoin liquidity’s ballooning past $204 billion, hinting at a potential rebound if the dust settles.
