4-3-2025 – The cryptocurrency market suffered a dramatic downturn as Bitcoin shed nearly a tenth of its value amidst heightened global trade tensions and wavering confidence in the proposed American cryptocurrency reserve fund.

The digital assets landscape experienced widespread liquidation, with market participants retreating from speculative positions. “Everything is getting sold,” observed Adam Button, who manages Forexlive. He described the situation as a comprehensive “de-risking” sweeping through cryptocurrency investment circles.

Initially buoyed by discussions surrounding President Trump’s potential establishment of a national cryptocurrency reserve, Bitcoin subsequently tumbled as doubts emerged about the initiative’s future. By Monday evening, the premier digital currency had declined 9.47% to $85,321.69, despite commanding the largest valuation in the cryptocurrency sphere with over a trillion dollars in circulation.

The selloff extended beyond Bitcoin, with Ether—the second-largest digital asset—experiencing an even steeper decline exceeding 15%. Other prominent cryptocurrencies fared worse still, with XRP, Cardano, and Solana witnessing precipitous falls approaching 20%.

Compounding investor anxiety was President Trump’s announcement of comprehensive 25% tariffs targeting all Mexican and Canadian imports to the United States. Both neighbouring nations have signalled their intention to implement retaliatory measures, further stoking concerns about escalating trade hostilities and their potential economic ramifications across North American markets.