A crypto market crash is happening, with the Bitcoin price witnessing another correction, dragging altcoins like Ethereum, Solana, and Dogecoin along with it. This price crash is due to several reasons, including Donald Trump’s fast-approaching tariffs on April 2nd, which could spark a wave of sell-offs for the crypto market.
Crypto Market Crash: Why BTC, ETH, SOL, & DOGE Are Down
CoinMarketCap data shows that a crypto market crash has happened with the Bitcoin price dropping below $87,000 and at risk of losing the $86,000 support level. Altcoins like Ethereum, Solana, and Dogecoin have also witnessed declines.
This market crash has occurred following reports that US President Donald Trump could announce auto tariffs as soon as today. This provides a bearish outlook for the crypto market, as it will again raise concerns about a trade war. Given the market uncertainty that trade wars could cause, this will likely spark a wave of sell-offs
This development could reverse all the gains that Bitcoin and altcoins recorded over the weekend and earlier in the week. The flagship crypto rallied to as high as $88,500 following reports that Trump’s tariffs wouldn’t be as severe as earlier feared.
MicroStrategy’s purchase of 6,911 Bitcoin for $584 million earlier this week also contributed to the rebound in the Bitcoin price and other altcoins. However, the crypto market crash means these crypto assets risk losing their gains from earlier in the week.
Other Reasons For The Crash
Other reasons for the crypto market crash include institutional investors looking to be derisking ahead of the Personal Consumption Expenditures (PCE), which will be released on Friday. The PCE is the Fed’s favorite inflation gauge, and it coming above expectations could spark a wave of sell-offs in the market.
Meanwhile, the market crash has occurred as the Bitcoin price looks to fill the CME gap between $84,000 and $86,000. BTC closed within this range last week Friday but pumped over the weekend and has since failed to retrace back to this level, which it closed at on the CME market. Historically, the flagship crypto
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