The crypto market turns deep red on the morning of Feb. 25. For the first time this year, Bitcoin drops below the US$89,000 mark, with a low of US$87,629.

Ethereum falls 12.7 percent to $2,380, while Solana takes a 14.8 percent plunge to $136. Total market capitalization, meanwhile, is down 10 percent. According to Coinglass data, $1.34 billion worth of positions have been liquidated on centralized exchanges in the last 24 hours, mostly long positions.

A significant part of the price movement appears to stem from recent statements by U.S. President Donald Trump. According to Bloomberg, Trump confirmed last night that planned punitive tariffs against Mexico and Canada are "going ahead," leading to a drop in both the stock and crypto markets.

Bitcoin and other crypto currencies were already suffering from uncertainty in recent days, triggered by the billion-dollar hack at Bybit. The initial investor euphoria following the election of Donald Trump in November now seems to have completely dissipated. With a score of 25, the Fear and Greed Index shows "extreme fear" among investors. There seems to be a lack of positive catalysts to overcome the economic headwinds.

Even Strategy's buying frenzy yesterday, which bought 20,000 BTC for nearly $2 billion, could not boost the Bitcoin price. Instead, Bitcoin's technical picture after yesterday's correction is causing additional concerns. BTC closed Monday below the $92,500 level, previously considered a key support.

Thus, if there is no significant counter-movement in the coming hours and days, things could go further downhill for Bitcoin and, by extension, the altcoins.