Bitcoin (BTC), the most poplar and most valuable cryptocurrency, slipped below the $90,000 mark on Tuesday, deepening the ongoing downturn in the cryptocurrency market as investors reacted to US President Donald Trump’s anticipated tariffs on Mexico and Canada, set to begin on March 4.

The looming tariffs have heightened concerns over global trade disruptions, leading investors to pull back from riskier assets. Instead, investors have increasingly been going towards safer investment options, like gold, with the yellow metal's price shooting up dramatically.

In fact, the downturn has bee such that the overall crypto market witnessed a decline of nearly 8%, wiping out more than $230 billion from the total market capitalisation.

Bitcoin Price: Broader Crypto Market Slumps

The market’s decline was not limited to Bitcoin. Ether (ETH), the second-largest cryptocurrency by market capitalisation, fell over 10% in the past two days, continuing its sharp decline during Asian trading hours on Tuesday. Other major altcoins, such as Solana (SOL) and Dogecoin (DOGE), also faced heavy selling pressure. Solana dropped approximately 15%, while Dogecoin lost about 13% during the same period.

This selloff comes as the market continues to reel from last week’s record-breaking hack, which saw nearly $1.4 billion lost from crypto exchange Bybit. While Bybit pledged to fully restore the stolen funds—borrowing and purchasing Ether to offset losses—the broader sentiment across the market remains negative.

Bitcoin Price: Weak Sentiment Weighs on the Market

As per experts, crypto, at least at this moment, is seen as far too weak, and the same goes for the various meme coins as well.

While traditional assets like equities, fixed income, and gold remained stable, the crypto market has continued its downward trajectory. As of 8:26 a.m. in Hong Kong on Tuesday, Bitcoin had fallen 2.2% to approximately $91,902.

Crypto-Linked Stocks Also Hit

The downturn has also impacted shares of crypto-related companies. Coinbase Global Inc. extended its losing streak to six consecutive days, while MicroStrategy fell by approximately 5.7%, pushing its yearly performance into negative territory. Bitcoin mining company MARA Holdings Inc. dropped 5.3% on Monday, following a 13% decline the previous week.

With market sentiment fragile and regulatory uncertainties looming, investors remain cautious as cryptocurrencies face ongoing pressure from both macroeconomic developments and internal vulnerabilities within the digital asset space.