TLDR
A sharp selloff tied to Donald Trumps new 15% global tariff move knocked roughly 45% off crypto, erasing over $100 billion in value in hours.
- Bitcoin briefly dropped to around $64,000, majors fell 610%, and total crypto market cap slid to about $2.22.3 trillion as long leverage was flushed.
- The trigger was Trump raising global tariffs from 10% to 15%, which stoked fears of slower growth and sticky inflation, amplifying an already fragile, leveraged crypto setup.
- Next, markets will watch tariff implementation, legal pushback, macro data, and key Bitcoin levels near $60,000 and $70,000 to see if this is a reset or the start of a deeper risk-off phase.
Deep Dive
1. Scale Of The Selloff
Multiple reports say Bitcoin (BTC) fell about 5% to lows near $64,30064,400, with Ethereum (ETH), XRP, BNB, Solana (SOL), Dogecoin (DOGE), Cardano (ADA) and others sliding 610% in a short window.[](https://tokenpost.com/news/investing/18808)
This dragged total crypto market capitalization down roughly 45% to around $2.22 trillion, wiping more than $100 billion in a day.[](https://tokenpost.com/news/investing/18808) A separate analysis pegs the intraday market drop at about 4.5%.[](https://crypto.news/why-is-crypto-market-down-today-feb-23/)
Derivatives amplified the move. Around $460470 million of leveraged positions, mostly longs, were liquidated in 24 hours, with more than $350 million blown out in roughly an hour according to Coinglass-based estimates.[](https://tokenpost.com/news/investing/18808)[](https://coingape.com/crypto-market-crash-heres-why-bitcoin-eth-xrp-sol-ada-are-falling-sharply/)
2. How Trumps Tariffs Hit Crypto
The timing lines up closely with Trumps decision to replace struck-down emergency tariffs by hiking a new global tariff from 10% to 15% under Section 122 of the 1974 Trade Act.??
A blanket 15% tariff raises import costs and is seen as both growth-negative and inflationary, which can keep interest rates higher for longer. Crypto sold off alongside other risk assets as investors moved toward cash and hedges like gold.[](https://tokenpost.com/news/investing/18808)[](https://coingape.com/crypto-market-crash-heres-why-bitcoin-eth-xrp-sol-ada-are-falling-sharply/)
At the same time, on-chain and futures data show the market was already fragile: high leverage, large whale coins being sent to exchanges, and sentiment gauges sitting in extreme fear made the macro shock a convenient catalyst.[](https://crypto.news/why-is-crypto-market-down-today-feb-23/)?
The tariffs did not create weakness from nowhere; they accelerated a de-risking move in a crowded, leveraged crypto market that was already nervous about macro and geopolitics.
3. What To Watch Next
Legally, the Section 122 tariffs are capped at 15% and 150 days, and experts expect challenges in US courts and potentially at the WTO.? How strictly those limits are respected will shape whether this remains a short-lived shock or morphs into a prolonged trade conflict.
Macro data now matters even more. Recent US GDP figures around 1.4% annualized and inflation near 2.9% complicate hopes for rapid Federal Reserve rate cuts, which could keep liquidity tight for speculative assets including crypto.[](https://coingape.com/crypto-market-crash-heres-why-bitcoin-eth-xrp-sol-ada-are-falling-sharply/)?
On the crypto side, traders are watching whether Bitcoin can hold support in the low to mid 60,000s, whether liquidations and funding normalize, and whether subsequent tariff headlines trigger fresh waves of forced selling rather than being faded.
Conclusion
Trumps aggressive tariff hike provided a clear macro shock that collided with a leveraged, fearful crypto market, producing a fast $100 billion drawdown. Whether this becomes a deeper regime shift or just a sharp reset will depend on how far the tariff campaign goes, how quickly legal and policy clarity emerges, and whether macro data give the Federal Reserve room to ease financial conditions.
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