Trump’s Trade War: When Will Crypto Go Back Up?

US President Donald Trump’s recent announcement imposing tariffs — 25% on imports from Canada and Mexico and 10% on Chinese goods — has triggered a swift, large‐scale selloff in the crypto market.

This trade policy move was aimed at escalating pressure on key US trading partners. However, it has now heightened risk aversion across global financial markets. Because digital assets are notoriously sensitive to macroeconomic shocks, investors quickly shifted away from risky assets, and leveraged positions were forcefully unwound.

Here’s a brief breakdown of what happened to the crypto market after Trump’s tariff announcements.

Why is all crypto going down today?

Crypto investors reacted to the tariffs much like traditional risk assets. Market sentiment soured as concerns about potential inflation, reduced liquidity, and broader economic fallout set in. The tariffs have spurred fears that higher import costs and retaliatory measures could prolong the period of elevated US interest rates – factors that tend to depress the appetite for speculative assets such as cryptocurrencies.

As a result, the crypto market witnessed a rapid retreat in prices, mirroring declines seen in global equities and commodities. Overall, the market is down by 10% in the past 24 hours. However, the heaviest loss occurred in the meme coin and AI agents segment, with both niche markets seeing 15% wiped off.

Also, altcoins saw heavier losses, which in turn, saw Bitcoin dominance go up to 61.51%. This is a bearish signal for the market as it diminishes hopes for a potential altcoin season. The crypto fear and green index also turned yellow, reflecting fear, but at the higher spectrum.

Price declines across major cryptocurrencies

Several prominent cryptocurrencies have seen steep corrections since the announcement:

• Bitcoin (BTC): Reports indicate Bitcoin fell to levels around $91,000 to $95,000 — a drop of roughly 2.5% to over 6% in different assessments. Overall, Bitcoin hit a three‐week low of approximately $91,441.89 amid the selloff.
• Ethereum (ETH): Ether suffered a more dramatic decline. As of Monday morning, 3 February, the drop was as steep as 24% to levels near $2,494, reflecting its vulnerability amid risk-off sentiment.
• Altcoins (XRP, Solana, Dogecoin): Other tokens have experienced significant declines — with XRP falling by up to 15% in some reports and other altcoins slipping by double-digit percentages — reflecting the broad impact of the macro shock on the entire crypto ecosystem.

Liquidation of leveraged positions

A key consequence of the rapid price drop has been the triggering of mass liquidations in the highly leveraged crypto derivatives markets:

Over the past 24 hours, liquidations in the crypto market have ranged between approximately $2.2billion and $2.3bn. Coinglass data shows that more than $2.33bn was liquidated since Sunday morning, with heavily leveraged long positions bearing the brunt of the losses.

Specific figures indicate that Ethereum saw liquidations exceeding $600million, while Bitcoin’s liquidations were reported around $400m. In addition, the largest single liquidation order was recorded on Binance for an ETH/BTC pair valued at roughly $25.6m. These figures underscore the extent to which the market’s leverage amplified the selloff.

How low will Bitcoin go in this bear market? 

Predicting an exact bottom in a market as volatile as cryptocurrency is inherently uncertain. However, several technical analyses offer some guidance on where Bitcoin could find support in this decline:

Many analysts are watching a key support zone near $92,000, which Bitcoin has defended several times over the past two months. If this level holds, it could provide a cushion to stop further rapid declines.

Should the $92,000 support break, some technical models suggest the next support might lie around $87,000. A sustained breakdown past that level could open the door for a more dramatic slide. Indeed, on-chain options market data has recently indicated that the probability of Bitcoin falling to around $75,000 has doubled to roughly 22% in the coming weeks.

This range — from $87,000 down to about $75,000 — reflects levels where historical patterns have sometimes seen a sharper correction during periods of intense selling pressure.

When will crypto go back up? 

It’s very difficult to pinpoint an exact date when crypto “will go back up” because so many factors are in play. However, many analysts agree that once the initial shock from the new tariffs is absorbed—and if key support levels (for instance, around $92,000 for Bitcoin) hold — the market is likely to begin a recovery in the near term.

Some experts suggest that as investor sentiment steadies and if institutional inflows (such as renewed ETF demand) start to return, the rebound could begin as early as mid‐February. In other words, if the current selloff is just a temporary overreaction to Trump’s tariff announcement, you might see buying interest return within a few weeks.

Others caution that if macroeconomic headwinds persist (for example, if the Federal Reserve holds rates higher longer), the recovery might be delayed until late February or even early March.

In summary, while there’s no guarantee, the prevailing view is that after the market digests this shock — provided that support levels aren’t breached and favorable policy or monetary changes emerge — a rebound in crypto prices (and Bitcoin in particular) could start within the next few weeks, possibly by mid-February.

Keep in mind that crypto remains highly volatile, and these projections depend on how quickly broader economic conditions and regulatory signals improve.

To sum it up

In summary, Trump’s recent tariffs have set off a chain reaction in financial markets, with cryptocurrencies — already characterized by high volatility — experiencing a pronounced selloff.

The combined pressure of macroeconomic uncertainty and leveraged trading dynamics has led to one of the most significant liquidation events in recent memory, wiping out over $2.2bn in positions within a 24-hour period. The incident serves as a stark reminder of how geopolitical and trade policy decisions can rapidly destabilize even the most digital and decentralized asset classes.

This market response is part of a broader risk-off environment that continues to affect global asset classes, where uncertainty regarding trade policies and future monetary conditions pushes investors toward safer havens like the US dollar, further amplifying declines in risk assets such as cryptocurrencies.

1. 01.

   Why are Trump's tariffs affecting crypto?

   

   Trump’s tariffs have increased uncertainty and risk in global financial markets, which in turn reduces liquidity and makes investors pull back from risky assets like cryptocurrencies. The tariffs contribute to a stronger U.S. dollar and higher inflation expectations, limiting the likelihood of rate cuts that often support speculative investments such as crypto.

2. 02.

   How will a trade war impact the crypto market?

   

   A trade war deepens economic uncertainty and can trigger a risk-off mood among investors, leading to massive liquidations and sharp price declines in the crypto market. Over time, if the shock is absorbed and economic fundamentals remain intact, the market may recover; however, prolonged trade tensions can delay that rebound by keeping liquidity low and investor sentiment subdued.