Why Is Bitcoin Dumping Again? Cryptocurrency Crash?

Photo by Tianyi Ma on Unsplash

Bitcoin is dropping again. The last couple of days, Bitcoin has decline by over 10% going from $96,000 to under $87,000 as of this writing. Obviously, altcoins and the greater cryptocurrency market took a nosedive as well.

Isn’t this something that we’re all tired of hearing over the last couple of months?

So why is it happening again today?

What investors had been fearing over the last month is basically coming true. President Donald Trump doubled down on his tariff plans. On February 24 (yesterday), he confirmed 25% levies on imports from Canada and Mexico, plus a 10% tariff on Chinese goods, set to kick in soon.

Fears of inflation and global trade wars is high right now. And it’s not just Bitcoin that is suffering. The S&P 500 and Nasdaq slid too.

Investors are still getting themselves together after the Bybit hack caused mass panic and chaos on Friday. Last week, $1.4 billion in Ethereum was swiped from the exchange’s cold wallet, allegedly by North Korean hackers.

The news caused liquidations totalling nearly $1 billion, mostly on over-leveraged long positions.

Liquidations of such positions tend to make the dump a snowball effect. In order to get out of…