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Crypto Market Cap Falls 6% as Trump Policies Raise Concerns

The crypto market fell 6% on Tuesday as investor concern increased about President Donald Trump's trade intentions.

Canada, Mexico, and China are among the US trade partners targeted by tariffs, which have spooked markets and caused risk asset sell-offs.

Since Trump's re-election on Nov. 5, the S&P 500 has lost about 3%. Bitcoin fell 3.4% to $79,415 and Ether 9.4% to $1,963. Dogecoin fell 10% and XRP 6.5%.

Markets Continue to Sell Despite Strategic Bitcoin Reserve

Trump's trade policies have stoked worries of an economic slowdown, causing a market collapse that wiped $4 trillion from the S&P 500's high last month.

“The crypto market continues to exhibit risk-on behavior, with investor sentiment remaining cautious despite key developments,” said WeFi growth head Agne Linge. Since volatility began on March 3, selloffs have continued despite the Bitcoin reserve announcement.

Crypto Market Downturn Causes Widespread Liquidations

Over $939m in crypto liquidations have affected 331,426 traders in the previous 24 hours, according to CoinGlass. Bitcoin (BTC) topped the liquidation spree with $315.44m, followed by Ethereum with $245.90m. Other big losses were XRP ($36.91m), DOGE ($29.14m), and SOL ($47.81m). Little cryptocurrencies donated $96.85m to liquidation.

YouHodler's chief of markets, Ruslan Lienkha, noted economic headwinds affecting market sentiment.

He claimed the US stock market is pessimistic and recession fears are mounting. “These factors could turn the consolidation phase into a medium-term bearish market.”

Lienkha also noted that crypto is tightly related to financial markets.

A large stock market correction or fall is unlikely to boost the crypto market, he added. Bitcoin may become a hedging asset in the future, but investors see it as a high-risk asset that reacts more strongly to market mood than conventional financial markets.