Bitcoin (BTC), the world’s leading cryptocurrency, fell below $91,000 on February 25, 2025, following reports of US President Donald Trump’s tariffs on Mexico and Canada. The announcement triggered a sell-off in the crypto markets, marking the second time Trump’s tariffs have significantly impacted Bitcoin.
As of today, Bitcoin has dropped over 4.5% in the past 24 hours, reaching its lowest level since November at $90,707. The broader crypto market lost 8% of its total value, shrinking from $3.31 trillion to approximately $3.09 trillion.
Altcoins and Market Impact
Other major cryptocurrencies also saw sharp declines. Ethereum (ETH) plunged 8.5% to trade below $2,500, while XRP fell 9% to $2.25. The downturn led to forced liquidations, as speculative traders rushed to exit their positions.
Memecoins Under Pressure
Memecoins were hit particularly hard amid concerns about insider manipulation and sustainability. Solana (SOL), a major hub for memecoins, lost $50 billion in market value over the past month, partly due to fallout from the Libra memecoin scandal involving Argentinian President Javier Milei.
Another top Solana-based memecoin, Official Trump (TRUMP)—backed by President Trump—has plunged over 75% from its peak. Additionally, with $1.72 billion worth of SOL set to be unlocked on March 1, selling pressure is expected to increase as new supply enters the market.
Trump’s Tariff Announcement and Market Reaction
Trump confirmed that the US was moving forward with tariffs on Canada and Mexico. When asked about potential trade restrictions once the tariff pause deadline expires next week, Trump insisted that the US had been treated unfairly by its neighbors and allies.
“We’re on time with the tariffs, and it seems like that’s moving along very rapidly… We’ve been mistreated very badly by many countries, not just Canada and Mexico. We’ve been taken advantage of,” Trump stated, according to Reuters.
Massive Liquidations Across the Crypto Market
Following this announcement, Bitcoin’s price dropped below $91,000, triggering nearly $1 billion in total liquidations, according to data from Coinglass. Earlier in February, a historic $2 billion was wiped out from the crypto market, leading to widespread panic among investors.
Analysts, including James CryptoGuru, noted that since Trump’s second term began on January 20, his policies have erased up to $734 billion from the crypto market, raising concerns about future regulatory risks.