President Donald Trump incited a $300 billion crypto market pump on Monday following the announcement of a US crypto reserve.
The same Donald Trump has now induced a $300 billion crypto market dump as his trade tariffs come into effect on March 4.
Total market capitalization has crashed almost 14% over the past 36 hours or so in a plunge to $2.82 trillion from over $3.2 trillion on Sunday evening. The move has wiped out all brief gains from the pump that followed his crypto reserve announcement on March 2.
Coinglass reported that more than 311,000 traders were liquidated in the past 24 hours to the tune of just over a billion dollars.
Trump Pump and Dump
“Trump pumped it with a tweet. Trump dumped it with his tariffs. All his doing. Sad but true,” commented economist Alex Krüger on X.
Meanwhile, trader and analyst ‘DonAlt’ said he guessed people came to the realization that Trump “is probably not gonna be able to push this through Congress overnight.”
“Tomorrow, tariffs — 25% on Canada and 25% on Mexico,” Trump said during a press conference at the White House on March 3. “And that’ll start… What they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” he added.
Trump also signed an executive order on Monday raising tariffs on imports from China to 20%, up from 10%.
The Trump dump has also hammered stock markets, with the S&P 500 erasing a whopping $1.5 trillion in market cap.
What just happened?
The Dow just went from being up +300 points at the open to falling as much as -1,100 points in hours.
Between 10:00 AM and 3:30 PM ET, the S&P 500 erased a whopping $1.5 trillion in market cap.
Here’s exactly what you need to know.
(a thread) pic.twitter.com/nQpKOlrihB
— The Kobeissi Letter (@KobeissiLetter) March 3, 2025
Bitcoin Dumps Below $83K
Bitcoin dumped to an intraday low of $82,864 during early trading in Asia on Tuesday, shedding almost 12% in little over a day. Meanwhile, the BTC fear and greed index had fallen back into extreme fear.
Bitcoin Fear and Greed Index is 15 — Extreme Fear
Current price: $86,273 pic.twitter.com/POoRvfOjp3— Bitcoin Fear and Greed Index (@BitcoinFear) March 4, 2025
Ethereum has been smashed again, falling lower than previously to just over $2,000, its lowest level since November 2023. Even the altcoins mentioned in Trump’s crypto reserve had lost most of their gains within 24 hours.
The crypto market dump has also closed a massive $10,000 CME Bitcoin futures gap that opened over the weekend when traditional markets were closed.
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