The crypto market has entered full panic mode, with sentiment plunging to “Extreme Fear” after U.S. President Donald Trump confirmed his 25% tariffs on Canada and Mexico are moving forward. According to the Crypto Fear & Greed Index, the market’s score collapsed from 49 to 25 in just 24 hours. This is the first “Extreme Fear” rating since September.
Bitcoin is feeling the heat. BTC has dropped 8.2% in the past 5 days, now trading under $90,000, its lowest price since November, according to TipRanks. The entire crypto market has shed nearly 8% of its value, wiping out over $220 billion in a single day.
Traders Fear a Repeat of Previous Tariff Sell-Offs
This isn’t the first time Trump’s tariff threats have sent crypto markets spiraling. Earlier this month, Bitcoin fell from $105,000 to $92,900 after the tariff announcement, while over $2.2 billion in Ethereum liquidations followed. The same pattern happened when Trump imposed 25% tariffs on aluminum and steel imports on Feb. 9, and again when he signed an executive order for sweeping trade tariffs on Feb. 13.
Global Markets Follow Crypto’s Decline
It’s not just crypto feeling the pressure. The S&P 500 has dropped 2.3% over the last five trading days, while the Nasdaq Composite is down 4%. With tariffs set to resume next month and tensions rising, investors should brace for more volatility and track both the traditional and crypto markets on TipRanks. Click on the image below to find out more.
