Crypto officially enters bear market after losing $1 trillion since December

Bitcoin (BTC) tumbled below $82,000 in the past 24 hours, triggering $1 billion in liquidations as crypto markets reacted to escalating trade tensions under President Donald Trump.

The broader financial markets also saw steep losses, with the S&P 500 wiping out $1.5 trillion in market cap and the Dow Jones shedding over 1,100 points at its lowest intraday level.

According to Coinglass, 305,000 traders were liquidated, with total crypto liquidations reaching $1 billion. The majority over $900 million, came from long positions.'

Bitcoin briefly hit a low of $82,500 before rebounding slightly above $83,000. Ethereum (ETH) fell below $2,100, marking a 10% drop in the past day, its lowest level in 15 months.

The decline comes as the Trump administration’s tariffs on Canada, Mexico, and China take effect, raising concerns over global trade disruptions.

According to The Kobeissi Letter, crypto markets have now lost $1 trillion in market cap since Dec. 18, marking a 26% decline from all-time highs.

Rate cuts on the horizon?

Treasury Secretary Scott Bessent hinted at possible interest rate cuts to stabilize the economy.

“We're set on bringing interest rates down,” Bessent told Fox News.

The 10-year Treasury yield has already fallen from 4.80% before Trump’s inauguration to 4.13% today, reflecting shifting expectations. The CME FedWatch Tool now shows a 47% chance of a rate cut by May and a 36% chance of two or more cuts by June.

However, inflation remains a key risk, standing at 3% year-over-year after four consecutive months of increases.

Trump’s strategic crypto reserve plan lingers

Bitcoin and altcoins continue to trade on news of Trump’s proposed U.S. Crypto Reserve, which is set to be discussed at the White House Crypto Summit on March 7.

“Even the SEC’s latest move—pausing and dismissing enforcement cases against crypto firms—failed to stem the sell-off, underscoring broader risk aversion in the market,” QCP Capital added.