Bitcoin News Today: Crypto Market Crashes 5.87% as Trump Tariffs and Fed Policy Spark Panic
The cryptocurrency market is in turmoil today as Bitcoin and altcoins plunge amid escalating macroeconomic tensions. With the Fed holding rates and Trump proposing aggressive tariffs, investors are fleeing risk assets—here’s what you need to know.
Bitcoin News: Market Plunge Triggers $632M Liquidations
The crypto market dropped 5.87% in a sharp sell-off, with Bitcoin (BTC) and Ethereum (ETH) falling 2% and 3.6%, respectively. Altcoins like Solana (SOL) and Cardano (ADA) suffered even steeper losses. Key factors driving the downturn:
- Fed Policy: The U.S. central bank’s decision to hold interest rates spooked investors, leading to liquidity withdrawal.
- Trump Tariffs: Proposed 10-50% tariffs on 60 countries intensified market anxiety.
- Liquidations: Over $631M in long positions were wiped out, with BTC and ETH seeing $144M and $168.9M in liquidations.
Crypto Market Reacts to Macroeconomic Pressures
The Altcoin Season Index dropped to 35, signaling a shift back to Bitcoin dominance as risk aversion grows. Meanwhile, traditional markets showed mixed reactions:
| Market | Performance |
|---|---|
| Dow Jones | -0.19% |
| Nasdaq | Record high |
| Crypto Total Cap | -5.87% |
Stablecoin Risks and Regulatory Uncertainty
Despite new laws, stablecoins remain under scrutiny. Key concerns:
- 43% of CFOs cite volatility as their top crypto investment worry.
- De-pegging risks could trigger a “bank run” scenario.
- The GENIUS Act faces criticism for potential regulatory loopholes.
What’s Next for the Crypto Market?
Investors are reassessing exposure to digital assets amid Fed policy shifts and geopolitical tensions. Clarity on tariffs and regulation will be critical for market recovery.
FAQs
Why did the crypto market crash today?
The sell-off was driven by Fed rate decisions, Trump’s tariff proposals, and broader risk aversion.
Which cryptocurrencies were hit hardest?
Altcoins like Solana (SOL) and Cardano (ADA) fell nearly 6%, while Bitcoin dropped 2%.
Are stablecoins safe during market crashes?
Stablecoins still face de-pegging risks, and new regulations haven’t fully addressed these concerns.
How are traditional markets reacting?
The Dow Jones declined slightly, while the Nasdaq hit record highs, showing uneven responses to macroeconomic pressures.
