Crypto sentiment dives to 'extreme fear' as Trump keeps tariffs.
Crypto market sentiment has plunged into "Extreme Fear" territory following U.S. President Donald Trump’s confirmation that 25% tariffs on imports from Canada and Mexico will proceed as scheduled. The announcement has sent shockwaves through both crypto and traditional financial markets, intensifying concerns over a looming trade war.
The Crypto Fear & Greed Index, which measures market sentiment on a scale of 0 to 100, fell sharply to 25 on Feb. 25 — signaling "Extreme Fear."
This marks a steep decline from the previous day’s score of 49, which indicated a neutral market outlook.
Trump reiterated his tariff plans during a Feb. 24 press conference alongside French President Emmanuel Macron, stating that the 25% tariffs on Canadian and Mexican imports would move forward on schedule.
These tariffs, first announced on Feb. 1, include a 25% tax on most imports from the two countries, with Canadian energy facing a reduced 10% tariff. Imports from China would also face a 10% tariff under the policy.
Following the initial announcement, Bitcoin (BTC) plunged from around $105,000 to approximately $92,900, while more than $2.2 billion worth of Ether (ETH) was liquidated.
Market participants reacted to the heightened geopolitical tension, with Canadian and Mexican leaders promising retaliatory measures against the U.S.
Although Trump temporarily paused the tariffs for 30 days after securing border security commitments from Canada and Mexico, he confirmed the tariffs would resume once the pause lifts early next month.
This has reignited market fears, prompting another wave of sell-offs across the crypto space.
Bitcoin has dropped 4.5% in the past 24 hours, falling to just under $92,000 — its lowest price since late November, according to CoinGecko data. Meanwhile, the broader crypto market has lost nearly 8% of its value, shrinking from over $3.31 trillion to around $3.09 trillion.
Historical data shows similar market reactions to previous tariff announcements. On Feb. 9, Bitcoin stumbled after Trump declared a 25% tariff on aluminum and steel imports. A few days later, on Feb. 13, another market dip followed Trump’s executive order imposing sweeping reciprocal tariffs on various trading partners.
The last time the Crypto Fear & Greed Index hit "Extreme Fear" was on Sept. 7, when Bitcoin fell to around $54,000 after losing 7% over two days. The current sentiment drop suggests that traders remain highly sensitive to geopolitical risks, with tariff uncertainty weighing heavily on market confidence.
Traditional markets haven’t been spared either. The S&P 500 has fallen 2.3% over the last five trading days, while the Nasdaq Composite has dropped 4% during the same period.
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