Altcoins Collapse: Trump’s Tariff Threats Cause Cosmic Chaos

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The cryptocurrency market, which has been known to fluctuate as much as a British weather forecast, faced a sharp downturn on Monday, Feb. 23, triggered by President Trump’s threat of a 15% global tariff on U.S. imports. It’s not every day that a man with a penchant for orange hair and a love for tariffs manages to send the entire digital asset economy into a tailspin, but here we are.

Ethereum and Major Caps Under Pressure

Altcoins tumbled early Monday, Feb. 23, as the digital asset economy buckled under President Donald Trump’s latest threat to impose a 15% global tariff on goods entering the United States. The broad sell-off saw the total altcoin market capitalization slip below the $1 trillion mark for the second time in less than a week, while the wider crypto market cap retreated 3%. It’s like watching a toddler throw a tantrum, but with more spreadsheets and fewer hugs.

Leading the downturn was Ethereum ( ETH), which plummeted from $1,957 to a session low of $1,856 before staging a modest recovery to $1,880. These 24-hour losses of 4.5% wiped approximately $8.4 billion off its market cap, bringing it down to $227 billion. ETH has declined by more than 20% since the start of February and is poised to close in the red for the second consecutive month. Clearly, Ethereum’s developers are still figuring out how to make money without a 15% tax on everything.

XRP and BNB also faced significant headwinds, with both recording 24-hour losses exceeding 3%. For XRP, this signaled a sharp reversal of its midmonth momentum; after surging 15% over the Valentine’s Day weekend to hit $1.64, it plunged to a session low of $1.34 today. Meanwhile, BNB dipped below the critical $600 threshold as “extreme fear” continued to grip the market heading into month-end. It’s like the market decided that the only way to celebrate love is to crash your portfolio.

Some of the most aggressive losses were seen in Solana ( SOL), Bitcoin cash ( BCH), and Hyperliquid (HYPER). SOL-which has struggled with a 36% year-to-date decline-briefly touched a 10-day low of $77.36 before settling just under $80. At the time of writing, SOL was down nearly 7% on the day, while BCH and HYPER both saw declines of approximately 5%. It’s like watching a toddler throw a tantrum, but with more numbers and fewer hugs.

Divergence in Global Markets

In stark contrast to the crypto rout, Asian equity markets enjoyed a largely positive session. Investors in the region appeared to favor the U.S. Supreme Court’s ruling against previous trade tariffs, despite the president’s immediate vow to circumvent the court with new levies. Hong Kong’s Hang Seng led the rally, jumping more than 660 points, or 2.53%, to 27,081. South Korea’s KOSPI reached a fresh record high of 5,816 in early trading before paring gains to close 0.1% lower. It’s a wonder that the stock markets haven’t yet realized that they’re just a game of economic chess, and the pieces are all wearing tuxedos.

The buoyancy in Asian equities stands in fragile defiance of a fracturing global trade order. Investors are navigating a minefield of “tariff diplomacy” as the White House doubles down on its protectionist agenda. This escalation has sparked a high-stakes game of economic brinkmanship with the European Union, punctuated by French President Emmanuel Macron’s vow to meet U.S. levies with equal force-a standoff that has injected a significant “risk premium” into global markets. It’s like a game of chess where everyone’s playing with a different set of rules and no one remembers how to checkmate.

FAQ ❓

  • Why did altcoins drop today? Because someone decided that 15% tariffs were the solution to all problems, including the fact that the Earth is round and the sky is blue.
  • Which coins were hit hardest? Ethereum, XRP, BNB, SOL, BCH, and HYPER-all of whom are now questioning their life choices.
  • How big was the market impact? Altcoin market cap fell below $1 trillion, with ETH losing over $8 billion in value. It’s like losing your keys, but instead of keys, it’s billions of dollars.
  • What’s happening globally? Asian equities rallied despite U.S. trade tensions, highlighting market divergence. Or, as I like to call it, “the chaos continues.”

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2026-02-23 15:28