Crypto Market Continues Decline as Nvidia Chips Down and Donald Trump Threatens EU Tariffs

Key Takeaways

• Bitcoin falls below $85,000, dragging the crypto market further into decline.
• The global crypto market cap is down $1 trillion from its December peak.
• Nvidia posts strong earnings but sees its stock dip in after-hours trading.
• Trump’s threat of 25% tariffs on the EU adds to market uncertainty.

The cryptocurrency market is facing intense pressure, with a steep sell-off wiping out billions in value.

Bitcoin (BTC) and Ethereum (ETH) are leading the decline, while Nvidia’s (NVDA) latest earnings report failed to impress investors despite strong numbers.

U.S. President Donald Trump’s renewed tariff threats against the European Union add another layer of economic uncertainty.

Bitcoin Tumbles, Crypto Market Bleeds

The crypto market continues to struggle, with Bitcoin plunging below $85,000 and Ethereum following suit.

The losses have erased nearly $1 trillion from the global crypto market cap, which now stands at $2.79 trillion, down 4.6% in the last 24 hours.

According to CoinMarketCap, Bitcoin dropped 4.2% on the day and is down 12% for the week. Ethereum has fared even worse, falling 6.4% to $2,330, with a 15% loss over the past week.

The sell-off has triggered massive liquidations, with CoinGlass reporting $765 million in positions wiped out in the last 24 hours, adding to the $1.5 billion liquidated on Feb. 25.

A major factor behind the slump is record-breaking outflows from Bitcoin exchange-traded funds (ETFs).

On Tuesday, Bitcoin ETFs saw their largest-ever single-day outflow, with investors pulling $937.78 million, bringing total weekly outflows to $1.5 billion.

Nvidia’s Stock Slips Despite Strong Earnings

Nvidia delivered another quarter of explosive growth , yet its stock fell 1.5% in after-hours trading on Wednesday, following a 3.7% gain during regular trading hours.

For the quarter ending Jan. 26, Nvidia’s net income surged 80% year-over-year to $22.09 billion, while revenue jumped 78% to $39.33 billion. The company’s diluted earnings per share (EPS) rose to $0.89 from $0.49.

Full-year results were equally impressive:

• Net income: $72.88 billion (+145%)
• Revenue: $130.50 billion (+114%)
• Diluted EPS: $2.94 (+147%)

Despite the blockbuster numbers, Nvidia’s stock slipped post-market, with analysts suggesting that high investor expectations may have left little room for further upside.

The company projects $43 billion in revenue for Q1, a strong forecast but possibly not enough to sustain the AI-fueled rally that made Nvidia a $3 trillion company.

Trump Threatens 25% EU Tariffs

Donald Trump has renewed his threat to impose 25% tariffs on European imports, escalating tensions with the EU. The former president accused the bloc of being “formed to screw the United States,” sending a clear warning of potential trade disruptions.

The European Commission vowed to retaliate “firmly and immediately,” calling the tariffs “unjustified” and a risk to global trade stability. The EU is the U.S.’s third-largest trading partner alongside China, making any tariff war a significant economic event.

Next week, Trump may target Canada and Mexico with similar tariffs, focusing on auto exports and other goods. The European Commission pledged countermeasures to protect businesses, workers, and consumers.

If enforced, Trump’s tariffs could impact up to $29.3 billion worth of EU exports, sparking another round of trade hostilities that could ripple through global markets.