A crypto market crash is happening, with the Bitcoin price witnessing another correction

The crypto market is facing another correction, with Bitcoin dropping below the $87,000 mark and at risk of losing the $86,000 support level.

This price crash is happening amid several developments that could put pressure on the market to sell off. One such development is Donald Trump’s fast-approaching tariffs, which are set to hit on April 2nd.

Crypto Market Down As Trump Could Announce Auto Tariffs Today

CoinMarketCap data shows that the Bitcoin price dropped to below the $87,000 mark and now trades at risk of losing the $86,000 support level.

Popular altcoins like Ethereum, Solana, and Dogecoin have also seen declines in their prices.

This market crash comes amid reports that US President Donald Trump could announce auto tariffs as soon as today. This provides a bearish outlook for the crypto market as it will again raise concerns about a trade war.

Given the market uncertainty that trade wars could cause, this will likely spark a wave of sell-offs for the crypto market.

This development could negate all the gains that Bitcoin and altcoins recorded over the weekend and earlier in the week. The flagship crypto rallied to as high as $88,500 following reports that Trump’s tariffs wouldn’t be as severe as earlier feared.

Also, MicroStrategy’s purchase of 6,911 Bitcoin for $584 million earlier this week contributed to the rebound in the Bitcoin price and other altcoins. However, the crypto market crash means these crypto assets could lose these gains from earlier in the week.

Other Reasons For The Crash

Other reasons for the crypto market crash include institutional investors looking to be derisking ahead of the Personal Consumption Expenditures (PCE), which will be released on Friday.

The PCE is the Fed’s favorite inflation gauge, and it coming above expectations could spark a wave of sell-offs in the market.

Meanwhile, the market crash comes as the Bitcoin price looks to fill the CME gap between $84,000 and $86,000. BTC closed within this range last week Friday but pumped over the weekend and has since failed to retrace back to this level, which it closed at on the CME market.

Historically, the flagship crypto has shown a tendency to either fill gaps quickly or stall at a specific support level for an extended period.