A recent market downturn has sent shockwaves through the cryptocurrency world, with total market capitalization plummeting 7.48% to $2.91 trillion. Bitcoin (BTC) notably lost critical support at $90,000, falling to around $86,000, while Ethereum (ETH) experienced a decline of 10.37%, reaching a value close to $2,300. Solana (SOL) and XRP saw even steeper losses of 12.6% and 10.67%, respectively. The driving forces behind this sharp decline include the announcement of Trump’s proposed import tax on products from Canada and Mexico, which has reduced risk appetite in global markets and impacted the cryptocurrency sector heavily. Global market indices like the S&P 500 and Nasdaq also experienced declines, further influencing investor sentiment and fueling the downward trend. These events triggered over $1.3 billion worth of liquidations, as major exchanges like Binance sold off assets including Ethereum, Solana, and TRUMP coin, contributing to the volatility. Analysts are divided on the future trajectory of the market, with some suggesting a healthy correction and others warning of potential losses, especially for altcoins. The recent sell-offs by institutional investors like Strategy’s large acquisition of 20,356 BTC may play a crucial role in the market’s direction. Meanwhile, experts are watching closely for signs of recovery or further declines. With concerns about the global economy and ongoing selling pressure, a prolonged period of stagnation may be on the horizon for the crypto market, particularly affecting altcoins.