Bitcoin sinks below $90,000 on U.S. trade concerns; Ethereum, Solana drop up to 15%

As of 1:04 PM IST, Bitcoin fell 5.4% to $89,626. Ethereum dropped 7.7% to $2,498. The global crypto market cap declined 4.7% to $2.98 trillion in the past 24 hours.

Investor sentiment weakened following U.S. President Donald Trump’s remarks that tariffs on Canada and Mexico are “on time and on schedule,” alongside his move to restrict Chinese investments in key sectors. Weak U.S. economic data, including sluggish retail sales, lower consumer confidence, and softer manufacturing and services sector reports, further dampened market confidence, pressuring the U.S. dollar.

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“Global markets have reacted strongly to Trump’s 25% tariffs on Canada and Mexico, impacting crypto. Inflation concerns and trade disruptions are driving short-term sell-offs, but investor focus should be on how neighboring countries respond,” said Edul Patel, CEO and cofounder of Mudrex.“Bitcoin found support near $91,000, while altcoins like Ethereum, XRP, and Solana took a bigger hit. Resistance remains at $96,000, presenting opportunities as BTC starts its recovery,” Patel added.

Avinash Shekhar, Co-Founder & CEO of Pi42, said, “Trump’s tariff threats against Mexico and Canada have triggered panic, erasing $230 billion from the crypto market.””Bitcoin’s drop to $91,362 signals market uncertainty. Crypto funds saw $508 million in outflows, while XRP and altcoins continue bleeding. Additionally, Bybit’s mega-breach has heightened security concerns,” Avinash added.Also Read: Bitcoin’s drop: A chance for retail investors to buy the dip? Here’s what experts say

Major altcoins also declined, with XRP down 9%, BNB losing 7%, Solana falling 15.5%, and Dogecoin dropping 12.7%. Cardano, Chainlink, Tron, Sui, Avalanche, Stellar, Litecoin, Shiba Inu, and Hedera recorded losses between 6% and 17%.

“Altcoins remain under pressure, with BNB, XRP, and Ethereum down 6-10%, while Solana plunged 13% amid slowing on-chain activity. Bitcoin holding $92,000 is crucial for market stability, with $90,000 being a key downside target if weakness continues,” said Vikram Subburaj, CEO of Giottus.

Also Read: Pi Coin’s next move: Can it hit $100 and beyond?

Bitcoin’s market cap fell to $1.825 trillion, with its dominance at 61.25%. BTC’s 24-hour trading volume surged 144.5% to $51.42 billion. Stablecoins accounted for $134.24 billion of this volume, or 94.16%, according to CoinMarketCap.

(Disclaimer: Recommendations, views, and opinions expressed by experts are their own and do not reflect the views of The Economic Times.)