The crypto market experienced a sharp decline over the weekend, with Bitcoin’s value nosediving below $94,000. It faced intense selling pressure, resulting in a 27% decline in Ethereum’s value and losses of 15-23% for smaller tokens.

Furthermore, the market witnessed a staggering decline in its overall value, with the total market capitalization plummeting by a staggering $360 billion. Bitcoin, the flagship cryptocurrency, fell hard, experiencing a significant price drop of up to 6% and momentarily hovering near the $93,000 mark.

However, in a tentative display of resilience, the market has managed to rebound slightly over the past hour. According to the latest data available on CoinMarketCap, Bitcoin has regained some of its lost ground and is currently trading at approximately $95,000.

Trump’s Tariff Plans Scare Investors

The recent downturn in the market was precipitated by U.S. President Trump’s recent imposition of tariffs on imports from Canada, Mexico, and China.

To be effective from Tuesday, Trump signed three executive orders imposing tariffs on imports from Mexico, Canada, and China. In addition, most Canadian and Mexican imports will face a 25% tariff, while Chinese goods will be subject to a 10% tariff.

In addition, Canadian energy products will receive a lower 10% tariff, while Mexican energy imports will be subject to the full 25% tariff. The affected countries have reacted strongly to the news, with each expressing their intention to take countermeasures, setting the stage for a potential trade showdown.

According to the U.S. President, the tariffs will address the national emergency posed by illegal aliens and drugs, particularly fentanyl, entering the country. He believes that imposing the tariffs will hold these countries accountable for halting illegal immigration and stopping the flow of fentanyl and other drugs into the US.

Regardless of the motivation behind Trump’s decision, the tariffs have sparked widespread concerns about a potential trade war, prompting investors to divest from riskier assets, including cryptocurrencies.

Trump’s Crypto Market Power Play

Trump’s impact on the crypto market is undeniable, with his influence stretching back to his presidential campaign. His crypto-friendly promises and subsequent actions have largely contributed to the market’s growth, even pushing Bitcoin’s price above $100,000.

However, the recent tariff announcement marks one of the rare instances where his actions have hurt the market.

Interestingly, the Trump administration included cryptocurrency executive orders among its first 200 actions, showcasing the administration’s focus on the digital asset space. Although the details of these orders were not specified, the announcement alone significantly influenced market sentiment, demonstrating Trump’s substantial influence over the crypto market.