Crypto markets crashed during the late hours of the US session on Monday, causing millions in liquidations as Bitcoin (BTC) extended its leg down. The crash followed reports on US President Donald Trump’s tariffs against Mexico and Canada, triggering a sell-off.

It marks the second instance where the president’s tariffs influence crypto markets, highlighting Bitcoin’s growing reaction to macroeconomic events.

Bitcoin and Crypto Markets React To Trump’s Tariffs

Trump said the US was ‘on time with the tariffs’ on Canada and Mexico. According to Reuters, this followed an inquisition on whether tariffs would be placed on Canadian and Mexican goods once the agreed deadline for a pause arrives next week. In response, Trump reportedly articulated his view that its neighbors and allies had mistreated the US.

“We’re on time with the tariffs, and it seems like that’s moving along very rapidly…We’ve been mistreated very badly by many countries, not just Canada and Mexico. We’ve been taken advantage of,” Reuters reported, citing Trump at the White House.

In this report’s immediate aftermath, Bitcoin’s price slipped below the $92,000 threshold. Similarly, crypto markets crashed, with the total market capitalization losing up to 7% of its value. Meanwhile, data on Coinglass shows the crash saw nearly $1 billion in total liquidations across the crypto industry.

“In the past 24 hours, 299,006 traders were liquidated, the total liquidations come in at $918.18 million,” Coinglass indicated.

Coinglass data also shows that the majority of rekt positions comprised longs as Bitcoin’s price dropped to $91,514. This is not the first time the Trump tariffs narrative has influenced crypto markets.

In hindsight, over $2 billion was wiped out from the crypto market in early February, causing a historic liquidation event. As BeInCrypto reported, the incident followed President Trump imposing a 25% tariff on imports from Canada and Mexico.

Following reports of a reprieve on Trump tariffs, crypto markets recovered. Bitcoin’s Coinbase Premium soared to a local high in the immediate aftermath of the pause three weeks ago. These events align with a recent JPMorgan survey, which showed tariffs and inflation would be the top market influences in 2025.

Eddie Wen, the global head of digital markets at JPMorgan, also cited market fluctuations in response to new headlines about the Trump administration’s plans, citing “knee-jerk reactions in the marketplace.”

Amidst these corrections, however, MicroStrategy (now Strategy) chair Michael Saylor saw the recent crash as an opportunity to buy Bitcoin at a discount. His recent remarks, “Bitcoin on sale,” align with those of Robert Kiyosaki.

As BeInCrypto reported, the author of Rich Dad Poor Dad urged investors to buy BTC as markets crash, calling it a prime wealth-building moment amid global economic uncertainty.

Meanwhile, James, a popular crypto analyst on X, highlighted that Trump has wiped out up to $734 billion of the crypto market since his second term commenced on January 20.

“Trump has wiped out 20% of the crypto market since he took office. $734 billion,” James wrote on X.

As of this writing, Bitcoin traded for $92,047, representing a 3.4% drop since Tuesday’s session opened.

Montana lawmakers have rejected House Bill 429 during the House floor session. The bill would have allowed the state to hold Bitcoin (BTC) as a state asset.

This comes after the bill advanced through the Business and Labor Committee with a 12-8 vote last week.

Montana Strategic Bitcoin Reserve Bill Rejected

House Bill 429 also included provisions for investing in precious metals and stablecoins. Meanwhile, Bitcoin was the only digital asset that met the $750 billion market cap requirement.

Representative Curtis Schomer called it “a precious bill for the treasury state.” He emphasized the need to diversify state reserves amid concerns over inflation and federal political shifts.

“The dollar is not as strong as we think, and we should not be putting all of our eggs in one basket,” he said.

Schomer highlighted precious metals as a historical hedge against economic uncertainty and digital assets as a modern investment with long-term growth potential. He stressed that digital assets have the potential for exponential returns.

“Montana will have more control over its economic development and not be susceptible to federal political turmoil,” Schomer added.

He also noted that the bill move would help drive the state’s economic growth.

Nonetheless, the bill was rejected in a 41-59 vote. The proposal faced a largely partisan split. However, many Republicans joined Democrats in opposition.

“HB 429 failed in the House, largely due to fiscal conservative opposition,” Bitcoin Laws posted on X (formerly Twitter).

According to Bitcoin Laws, fiscal conservatives were divided on Bitcoin-related legislation. Some argue that using taxpayer money for Bitcoin investments is too risky and amounts to speculation.

“It’s still taxpayer money, and we’re responsible for it, and we need to protect it,” State Representative Steven Kelly said.

Meanwhile, proponents countered that calculated risks are necessary to grow state assets, particularly amid inflation. They described it as a greater threat to taxpayers. In addition, they framed Bitcoin as a tool to preserve and potentially increase the value of state reserves over time.

Despite an amendment attempt to fund the bill with American Rescue Plan Act (ARPA) interest instead of general funds, lawmakers questioned the legality of such a move, further undermining support. 

With the rejection of HB 429, Montana joined Wyoming, North Dakota, Mississippi, and Pennsylvania, where similar Bitcoin-related legislation has failed. Meanwhile, 20 other states have active proposals under consideration.

Crypto markets need to monitor several key US economic data points this week, given the abounding influence of macroeconomic events on Bitcoin (BTC).

Bitcoin is trading near the $95,000 range, with this week’s economic events likely to provoke its next directional bias.

Consumer Confidence

The University of Michigan will report the US consumer confidence on Tuesday, detailing buyer attitudes, buying intentions, vacation plans, expectations for inflation, stock prices, and interest rates.

After the previous consumer confidence index of 104.1, the consensus is a minor retraction to 102.4. This sentiment comes amid President Donald Trump’s policies, with Ark Invest’s Cathie Wood noting the new administration’s impact on spending.

“…today nearly a third of the labor force, and perhaps their families, could be holding back on spending until they see the impact of rapid policy changes. While we believe the changes will be net positive for the economy – perhaps massively so – the short-term uncertainty is palpable,” Wood explained.

Notably, consumer confidence data does not move crypto markets the way a Federal Reserve (Fed) rate hike might. However, it is a signal of how people are feeling about discretionary spending and investment. Crypto and Bitcoin, in particular, largely being a retail-driven market, are sensitive to that vibe.

Initial Jobless Claims

Thursday’s initial jobless claims report is also a key US economic data to watch this week. It measures the number of people filing for unemployment benefits for the first time in a week, serving as a real-time pulse on the labor market and broader economy.

As such, this report’s influence ties to how the data shapes investor sentiment, including expectations about monetary policy. When jobless claims rise unexpectedly, it signals potential economic weakness—think layoffs, slowing growth, or recession risks.

Investors often interpret this as a cue to dial back risk, pulling money from volatile assets like Bitcoin and cryptocurrencies in favor of safer bets like cash or bonds. Conversely, when initial jobless claims drop or come in lower than expected, it is a sign of labor market strength.

This can boost confidence, encouraging investors to invest in riskier assets, including crypto. A strong jobs picture might ease fears of aggressive rate hikes, giving Bitcoin room to climb—especially if it keeps its digital gold allure intact.

According to data from MarketWatch, after a previous reading of 219,000 jobless claims, economists anticipate a rise to 225,000 for the week ending February 22.

GDP

The US GDP report, scheduled for release this Thursday, could also significantly sway Bitcoin and cryptocurrency markets. Like consumer confidence and initial jobless claims, the data could shape investor perceptions of economic health and monetary policy direction.

A stronger-than-expected GDP figure might signal strong economic growth, potentially reducing Bitcoin’s appeal as a hedge against uncertainty. Investors could lean toward traditional assets like stocks, expecting tighter Federal Reserve policies to curb inflation.

This risk-off shift often pressures crypto prices downward, as Bitcoin’s correlation with equities has tightened recently. For instance, if GDP growth exceeds forecasts (above the projected 2.3% for Q4 2024), it might dampen hopes for rate cuts. Such an outcome would prompt a sell-off in speculative assets like crypto.

Conversely, a weaker-than-expected GDP report could fuel a crypto rally. If growth slows significantly, perhaps falling short of the prior quarter, it might stoke recession fears, pushing the Fed toward a more dovish stance with potential rate cuts.

This scenario often boosts Bitcoin’s allure as a digital gold or alternative store of value, especially if investors lose faith in fiat stability amid economic softness.

PCE

Another US economic data point to watch this week is the January PCE (Personal Consumption Expenditures), set for release on Friday. As the Fed’s preferred inflation gauge, this metric will give a fresh read on how price pressures are trending, potentially swaying expectations for interest rates and, by extension, risk assets like crypto.

If the PCE comes in hotter than expected, above the consensus estimate of 0.3% monthly growth for the headline index or 0.2% for the core, it might signal stubborn inflation. This could reduce the odds of near-term rate cuts, possibly spooking investors and dragging Bitcoin down as money flows out of speculative plays and into safer bets like bonds.

On the other hand, a cooler-than-expected PCE, which is closer to or below the Fed’s 2% annual target, could spark a rally.

“The idea of a 2% inflation target was first introduced by the Fed in 2012, when core PCE, the Fed’s preferred measure, was 1.8%. It was just an excuse to justify QE. For the first 99 years of the Fed’s existence, the unofficial target was zero, as the mandate was price stability,” Bitcoin critic Peter Schiff highlighted.

Lower inflation might fuel hopes that the Fed will ease rates sooner, maybe even at the March 19 meeting. This would make cheap money more available and boost the appetite for crypto.

Bitcoin has been sensitive to these macro cues lately, including its recent response to President Trump’s tariffs. Either way, investors should brace for possible volatility amid crypto’s tendency to react to these releases.

“PCE may be a bigger market mover than NVDA this week. Embrace the volatility,” one user on X observed.

BeInCrypto data shows Bitcoin was trading for $95,437 as of this writing, down by 1.1% since Monday’s session opened.