Bitcoin Falls Below $91,000 As US Tariffs Stir Inflation Concerns

Bitcoin (BTC), the largest cryptocurrency by market capitalization, drops below $91,000 on February 25, 2025, as investor concerns grow over new US trade tariffs on Mexico and Canada.
The decline follows the announcement of fresh tariffs imposed by US President Donald Trump, raising fears of inflation and triggering a sell-off across the cryptocurrency market. This marks the second time Trump’s trade policies influence digital assets, highlighting Bitcoin’s increasing sensitivity to global economic developments.
Currently, Bitcoin loses over 4.5% in the past 24 hours, reaching its lowest point since late November. The total cryptocurrency market capitalization also shrinks by 8%, sliding from $3.31 trillion to approximately $3.09 trillion.
The downward trend spreads to other major cryptocurrencies. Ethereum (ETH) drops 8.5%, falling below $2,500, while XRP loses 9%, trading at $2.25. Increased selling pressure forces many traders to exit their positions, intensifying the overall market decline.
Memecoins, known for their speculative nature, face steeper losses during this market crash. Solana (SOL), a key platform for memecoin activity, loses around $50 billion in market value over the past month, partly due to the fallout from the Libra memecoin scandal involving Argentina’s President Javier Milei.
Official Trump (TRUMP), a token associated with US President Donald Trump, also drops by more than 75% from its peak, fueling growing skepticism toward speculative assets within the Solana ecosystem. Further pressure is expected as $1.72 billion worth of SOL is scheduled to be unlocked on March 1, increasing supply and the potential for further price drops.
When asked about the likelihood of tariffs on Canadian and Mexican imports, President Trump confirms that the administration is on schedule to implement them, claiming the US has been unfairly treated by its trade partners.
“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 states during a press briefing.
In response to the announcement, Bitcoin’s value slips further to $90,707. Data from Coinglass reveals that nearly $1 billion in liquidations occurs across the crypto market following the sharp decline.
Earlier in February, over $2 billion disappears from the crypto market during a historic liquidation event. Analysts suggest that Trump’s trade policies have already wiped out approximately $734 billion in market value since the beginning of his second term on January 20.
With ongoing volatility and uncertainty surrounding global economic policy, investors are urged to remain cautious as cryptocurrencies continue reacting strongly to geopolitical developments.