Why the Crypto Market Crash Hit Hard on August 2, 2025
The cryptocurrency world was rocked on August 2, 2025, as major digital assets plummeted in value, wiping out billions from the market cap. Overall, the crypto market crash led to a staggering $150 billion evaporation in total capitalization, accompanied by more than $800 million in liquidations. Crypto Market Crash Key Triggers Behind the Crypto Market Crash While the crypto market crash unfolded rapidly, its roots trace back to broader economic signals and policy shifts. Trump’s Tariff Policies Ignite Risk-Off Sentiment President Trump’s announcement of reciprocal tariffs, ranging from 10% to 50% on imports from dozens of countries, including U.S. energy exports like coal and LNG, sparked fears of global trade disruptions and inflation. Set to begin on August 7, these measures hit U.S.-China relations hard, leading to a sell-off in stocks (Dow Jones down 1.3%, Nasdaq 2%) that spilled over into crypto as investors fled risky assets. Crypto Market Crash Hit Hard Weak U.S....