Crypto crash: Why are Bitcoin, XRP, DOGE, and TRUMP prices plunging today? Here are 2 possible reasons

Investors in cryptocurrencies are seeing red today. In the past 24 hours, the prices of most major cryptocurrencies and meme coins have plummeted. This includes crypto heavyweights like Bitcoin, Ethereum, and XRP as well as popular meme coins like Dogecoin (DOGE) and TRUMP. Here’s what to know about the biggest losers and possible reasons behind the crash.

Bitcoin drops below $90K for the first time since November

Unsurprisingly, the crypto that is getting the most headlines today is Bitcoin, which as of the time of this writing currently sits at around $89,000 per coin. That’s a 7% drop in the last 24 hours alone. It also represents of few other ignominious milestones for the cryptocurrency king as of late.

First, today’s decline marks the first time that Bitcoin has fallen below $90,000 since November 2024, after Donald Trump’s election victory sparked a crypto rally. Second, Bitcoin is now also down 20% since another important Trump marker: his inauguration day on January 20.

On Trump’s inauguration day, Bitcoin had hit an all-time high of over $106,000. The post-election victory and post-inauguration gains were largely fueled by the belief that a Trump presidency would be good for the crypto markets in general.

But it’s not just Bitcoin that is plummeting today. Other cryptocurrencies are as well. Those include (as of the time of this writing):

• Ethereum, which is down almost 10% in the past 24 hours (and down over 27% in the past month).
• XRP, which is down over 12% in the past 24 hours (and down over 31% in the past month)
• Solana, which is down almost 12% in the past 24 hours (and down over 46% in the past month)
• Dogecoin, which is down almost 11% in the past 24 hours (and down over 42% in the past month)
• Official Trump, which is down almost 14% in the past 24 hours (and down over 56% in the past month)

But what exactly is causing today’s crypto crash? While the digital assets do tend to be highly volatile anyway, the general consensus among crypto industry watchers is that two main events could be contributing to the plunge.

Trump’s tariffs lead to macroeconomic uncertainty

While Trump’s election victory was hailed as the best possible outcome for the crypto industry, it now appears that Trump could be doing more harm than good for digital currency markets.

That’s because since Trump was sworn in, he quickly set to initiating tariffs—or at least threatening to—against America’s major trading partners, including China, Mexico, Canada, and nearly every other country in the world.

Many fear these that tariff threats may lead to an all-out trade war between America and other major economies. Indeed, as BeinCrypto points out, after Trump seemed to confirm yesterday that the tariffs on Mexico and Canada would be moving ahead, Bitcoin sank and crypto markets saw almost $1 billion in liquidations.

When there is macroeconomic uncertainty—like the kind generated by potential trade wars—investors usually seek to lock in gains where they can by selling assets that have had good returns as of late.

Larger anxieties about where the economy may be headed may be driving many crypto investors to take their profits now to buffer any losses in the future.

The Bybit hack reminds crypto investors they are vulnerable

It’s not just Trump’s actions that are rattling crypto investors. Last week, the cryptocurrency exchange Bybit was hacked, leading to $1.5 billion dollars of cryptocurrencies being stolen. It is reportedly the largest crypto heist on record and is believed to have been carried out by actors in North Korea, reports CNN.

Major crypto heists in the past have rattled investor confidence, and this one is no different. Heists such as this remind investors that cryptocurrencies are more readily at risk of theft than other assets, such as stocks or properties.

To put the Bybit hack into greater perspective, Reuters reports that in all of 2024, there was $2.2 billion worth of crypto stolen. The ByBit hack signals that 2025 may be an even bigger year for crypto heists.