Well, that escalated quickly. The crypto market just got absolutely hammered, and…
We also recommend that you read:Well, that escalated quickly. The crypto market just got absolutely hammered, and if you’re holding any digital assets right now, you’ve probably already seen the damage in your portfolio. Bitcoin dropped from nearly $100,000 to around $65,000. Ethereum got crushed even harder. And the culprit? Good old fashioned trade war fears.
Let’s break down what happened, how bad it actually is, and what this means if you’re using crypto at online casinos.
Bitcoin is currently trading around $65,000-66,000. That’s down from nearly $100,000 just a few weeks ago. We’re talking about a drop of over 35% from recent highs. At its lowest point, BTC briefly touched the $60,000 range before bouncing back slightly.
But Bitcoin actually held up better than most. Ethereum got absolutely destroyed, dropping over 22% and falling below $2,200. XRP collapsed 33%. Dogecoin tanked 25%. Pretty much everything in the top 100 is bleeding red.
The total crypto market cap has lost over $1 trillion in value. One trillion dollars. That’s not a typo. The overall market dropped 12% in a single day, which is the largest decline in over a year.
And the liquidations? Brutal. Over $2.2 billion in leveraged positions got wiped out in 24 hours. More than 730,000 traders got liquidated. This wasn’t just a dip. This was a massacre.
Two words: Trump tariffs.
President Trump announced 25% tariffs on imports from Canada and Mexico, plus 10% on Chinese goods and Canadian oil. The markets immediately panicked. Stocks dropped. Crypto dropped harder.
Why does a trade war hurt crypto? Because when investors get scared about the economy, they dump risky assets first. And crypto, love it or hate it, is still considered a risky asset by most institutional money. When portfolio managers see tariff headlines, they don’t think “time to buy Bitcoin.” They think “time to reduce exposure to anything volatile.”
There’s also the inflation angle. Tariffs typically raise prices on imported goods, which means higher inflation. Higher inflation means the Fed can’t cut interest rates as easily. And crypto tends to do better in a low-rate environment where investors are willing to take more risk.
The timing made things worse. Bitcoin briefly recovered above $99,000 after Trump announced a one-month pause on Mexico tariffs. But that pause was temporary, and the broader uncertainty remained. Traders realized this wasn’t a one-time scare. It’s the beginning of a potentially prolonged trade war.
$2.2 billion in liquidations is a staggering number, but let’s put it in perspective. This was the worst single-day liquidation event in crypto history. Worse than the FTX collapse. Worse than the Terra Luna implosion.
Ethereum actually led the liquidations at $609 million, followed by Bitcoin at $412 million. Long positions accounted for 84% of total liquidations, meaning traders who were betting on prices going up got absolutely destroyed.
When you trade with leverage, you’re borrowing money to increase your position size. If the price moves against you, your position gets automatically closed to pay back the loan. When lots of leveraged positions get closed at once, it creates a cascade of selling that pushes prices down even further, triggering more liquidations. It’s a vicious cycle that can turn a 5% dip into a 30% crash in hours.
BlackRock’s Bitcoin ETF hit a record $10 billion in trading volume during the crash. That kind of volume usually means capitulation, where everyone who wanted to sell has sold. It could signal a bottom is near. Or it could mean things are about to get worse. Nobody really knows.
Some analysts are warning that Bitcoin could fall to $75,000 or even lower by March if the trade war escalates. Others think the worst is over and we’re due for a bounce.
The $60,000 level is being watched closely as major support. If Bitcoin breaks below that convincingly, we could see a much deeper correction. The 2024 highs around $73,000 would be the next major level to watch.
On the bullish side, Treasury Secretary Bessent’s comments about the government not bailing out crypto has actually been interpreted positively by some. It signals that the government sees crypto as a legitimate market that should stand on its own, rather than a problem that needs to be rescued.
Long-term, some analysts argue that tariffs could actually benefit Bitcoin eventually. If a trade war weakens fiat currencies and creates economic instability, people might turn to decentralized alternatives. But that’s a long-term thesis, and right now, everyone’s focused on not losing their shirts.
If you’re playing at crypto casinos, this crash has real consequences for your bankroll.
Let’s say you had $5,000 in Bitcoin sitting in your casino account a few weeks ago. Today, that same amount of Bitcoin is worth around $3,250. You didn’t gamble it away. You didn’t make bad bets. The market just ate 35% of your bankroll while you were sleeping.
This is the double-edged sword of crypto gambling. When Bitcoin goes up, your wins are worth more when you cash out. When Bitcoin crashes, your entire balance shrinks regardless of how well you’re playing.
For players who want the speed and privacy benefits of crypto without the volatility headaches, USDT casinos are worth considering. Tether is pegged to the US dollar, so $1,000 in USDT stays worth roughly $1,000 whether Bitcoin is at $100,000 or $50,000. No surprise value swings. No waking up to discover your bankroll got cut in half because of some tariff announcement.
Most major crypto casinos support USDT deposits and withdrawals. The transactions are typically faster than Bitcoin anyway, since Tether runs on multiple blockchains with lower fees.
This crash is a reminder that crypto is still a young, volatile market that’s deeply connected to broader economic forces. It’s not a safe haven. It’s not digital gold (at least not yet). When global markets panic, crypto panics harder.
But crypto has also recovered from worse. The 2022 bear market saw Bitcoin drop to $16,000. The COVID crash took it to $4,000 briefly. Each time, it came back. That doesn’t mean it will this time, but historical context matters.
For casino players, the practical takeaway is simple: don’t keep more in volatile crypto than you’re prepared to see drop 30-40% overnight. If you’re holding Bitcoin as your gambling bankroll, treat it as if its value could change significantly at any moment. Because it can. And it just did.
The trade war isn’t going away anytime soon. More volatility is likely coming. Position yourself accordingly.
Hi everyone, my name is Kevin and I am an author and creative manager at wagermaniacs.com. I have extensive experience in the field of gambling, as well as more than 15 years of experience playing in online casinos. These two facts allow me to be called a real expert in the field of iGaming.
My favourite online casinos: Vavada, Casino-X, Riobet and Mostbet