Trump’s tariffs and crypto “top signals” caused a $500B market crash, with overbought conditions and geopolitical tensions fueling the downturn.
The crypto market just took a massive hit, dropping nearly $500 billion, and now everyone’s wondering: was it Trump’s tariffs or the crypto market getting too hyped? Some analysts think Bitcoin (BTC) and other cryptos were overdue for a correction. The market had been showing signs of overheating for a while, with “top signals” popping up everywhere. These top signals happen when the market feels way too exposed, like when crypto apps hit new download records or celebrities jump on the crypto hype train.
One big event was Trump launching his own memecoin, TRUMP, on January 18. The launch made major headlines, bringing tons of retail investors into the mix. On top of that, Bitcoin recently hit new all-time highs without any real corrections, and we all know what happens next—sharp pullbacks.
While Trump’s tariffs definitely shook up the markets, many experts believe the crypto sell-off was more about the market being overbought than anything else. When retail adoption spikes and everything seems too good to be true, it’s a sign that things might crash. If geopolitical tensions continue and the trade war worsens, the bearish trend could stick around for a while, with traders now eyeing Bitcoin and Ethereum’s key support levels.
Also Read: February’s Top 5 Cryptos to Watch: XRP, Solana, Trump Coin, Dogecoin, and Pi Network