Crypto Market Suffers Sharp Crash Amid Tariff Concerns

The cryptocurrency market has been experiencing a significant downturn in recent days, with Monday being one of the worst days for the market. Bitcoin, the largest cryptocurrency by market capitalization, plummeted to $64,350, erasing all its recent gains. The total crypto market cap crashed by almost 5% to $2.22 trillion, wiping out more than $100 billion in the past 24 hours.

The Crypto Fear & Greed Index fell back to 'extreme fear' of 5 due to concerns about global tariffs and economic growth. This has led to a sharp increase in liquidations, with over $470 million in total liquidations reported by Coinglass. Bitcoin and Ethereum were among the most heavily affected cryptocurrencies, with long positions worth over $350 million being liquidated in just an hour.

The market crash was also attributed to the US President Donald Trump's decision to raise global tariffs to 15%. This move has sparked fresh uncertainty and volatility in global markets, hurting sentiment. The slower Q4 GDP growth of 1.4% due to government shutdown and tariffs, and core PCE inflation of 3%, have also weighed on the market.