President Donald Trump has influenced the cryptocurrency market again. This time, however, he is causing bearish sentiment among investors. Early Monday morning Polish time, bitcoin fell by 4.8%, falling to approximately USD 64,300 – the lowest since the beginning of February. Ethereum lost 5.2%, and smaller altcoins fell even more. In just 24 hours, the cryptocurrency market evaporated another $100 billion in value. And it could be even worse.
Customs is back in play
The direct catalyst was Donald Trump’s next move in trade policy. On Sunday, the president raised global tariffs from 10 to 15%, which came into force on February 24 at. 00:01 ET. It wasn’t just crypto assets that were under pressure – USD, S&P 500 futures (-0.8%) and Nasdaq 100 (-1%) also felt the brunt of this decision.
However, the background is more complex. On February 20, the U.S. Supreme Court ruled 6-3 that Trump’s original IEEPA tariffs were unconstitutional. President Roberts stated directly: the power to impose taxes rests with Congress, not the president.
Trump (instead of stepping down) simply changed the legal basis, reaching for Section 122 of the Trade Act of 1974. This provision allows for tariffs of up to 15% for 150 days. No one had used this tool before him. The legal battle continues, and more than a thousand importers have already filed lawsuits seeking refunds from previous tariffs, which generated approximately USD 133 billion in revenue for the government.
In the background, there are also changes taking place in the Middle East, which clearly suggest a war between the US and Iran. The transfer of planes, the aircraft carrier in the Arabian Sea and the subsequent arrivals through Gibraltar clearly show that this costly show of force will inevitably end in escalation.
Will President Donald Trump decide to attack? Such a decision may have a negative impact on the upcoming midterm elections this year, which in turn may bring Trump’s impeachment closer. His ratings in the polls have not been lower for 12 months.
ETFs are bleeding, institutions are fleeing
Twelve spot bitcoin funds listed in the US recorded the fifth consecutive week of net outflows – the longest such series since the beginning of February 2025. Over five weeks, investors withdrew a total of USD 3.8 billion, and since the beginning of the year losses have reached approximately USD 4.5 billion.
Even the giants are not safe: BlackRock’s IBIT recorded USD 84.2 million in outflows in one day, Fidelity’s FBTC another USD 49 million. The total AUM of all Bitcoin ETFs today is USD 83.6 billion, or 6.3% of the total BTC capitalization. Institutions reduce exposure. No sentiments.
The market is bleeding – record level of the Fear & Greed index
However, analysts agree on one thing: this is a crisis of trust, not a systemic crisis. No large institution has failed. Stock exchanges work, so do blockchain networks. The problem is the very unstable geopolitical situation, which is becoming more and more complicated day by day.
