Cryptocurrency market suffers $300 billion collapse from Donald Trump’s tariffs

The global cryptocurrency market recently experienced a significant collapse, losing $300 billion in value due to the imposition of tariffs by US President Donald Trump. This move caused a sell-off, wiping out nearly 14% of the total market capitalization in just 36 hours. The market capitalization fell to $2.82 trillion from over $3.2 trillion, erasing all gains from the sell-off that followed Trump’s statement about the American crypto reserve on March 2.

According to a report by SNVS, Trump’s tariffs came into effect on March 4, leading to a massive sell-off in the cryptocurrency market. Shortly before this, Trump’s statement regarding the American crypto reserve had spurred investments amounting to $300 billion. The impact of these tariffs was felt across the market, with more than 31,000 traders being liquidated in the past 24 hours, totaling over $1 billion in losses.

The price of Bitcoin, the most popular cryptocurrency, continued to plummet, reaching just under $83,000 amidst the market turmoil. This downward trend has raised concerns among experts and analysts about the stability and future of the cryptocurrency market in the face of such external factors like government policies and regulations.

Economists and Bitcoin critic Peter Schiff took to social media to call for an investigation by Congress into Donald Trump for what he described as “one of the largest crypto manipulations ever observed.” Schiff’s concerns stem from recent posts on Trump’s social media accounts that he believes were designed to artificially inflate the prices of various cryptocurrencies, including Bitcoin, XRP, Solana, and Cardano.

Schiff’s call for an investigation centers around the suspicion that individuals close to Trump may have used inside information to benefit from the cryptocurrency market manipulation. He urged law enforcement to track financial transactions linked to the incident, particularly focusing on the timing of investments and subsequent sales by individuals with early access to the posts. This raises significant questions about the integrity and transparency of the cryptocurrency market and the potential for market manipulation by influential figures.

Overall, the recent collapse in the cryptocurrency market highlights the volatility and susceptibility of digital assets to external factors, such as government policies and regulatory actions. The aftermath of Trump’s tariffs serves as a stark reminder of the challenges and risks associated with investing in cryptocurrencies, with experts calling for greater oversight and transparency to prevent future market manipulations and safeguard investor interests.