What Happened in Crypto Today: Crash Reasons Inside—Check Now

Crypto Market Crash Reasons Today: Trump Tariff, Pi Coin, and More

Crypto Market Crashes: What’s Causing the Panic? [April 3, 2025]

It's a terrifying day for the global cryptocurrency market as steep falls are just tumbling down all over in great urgency without any short-term recovery in sight. According to Coinmarketcap, total market capitalization has fallen to around $2.66 trillion, indicating a 2.44% decrease from where it was recorded in the past24 hours. Meanwhile, the 24-hour total trading volume dramatically increased to $131.39 billion, rising by 68.69% as a clear indication of heft sell pressure.

So what is the cause for this crash? What happened today

1. Bitcoin Drops After Trump’s Tariff Announcement

Bitcoin has taken a major hit after former U.S. President Donald Trump revealed a sweeping new trade policy. From the White House Rose Garden, he announced that the U.S. will impose reciprocal tariffs on over 180 countries, with no exceptions.

“The U.S. is charging countries approximately half of what they are and have been charging us,” Trump said.

For this unexpected announcement, global markets went for a complete tailspin. Bitcoin fell to $83,278.89, a drop of 1.85% in a mere 24 hours. Investors, spooked by the potential ramifications for international trade and inflation, went rushing to safe assets, with gold hitting a fresh new all-time high.

2. Stablecoin Bill Progresses Amid Concerns Over Trump’s Crypto Links

A chief committee of the US House has propelled the STABLE Act for forwarding progress by the popular stablecoins such as USDC and USDT. Improving the transparency and accountability of these actable items would be the primary purposes of the bill.

However, controversy arose in the session for lawmakers when some raised concerns over Trump's involvement in crypto. He has backed the memecoin $TRUMP, launched NFTs, and has links to WLFI, which just introduced a new stablecoin, USDI.

Despite the worries, 27 Republicans and 5 Democrats voted for the bill, advancing it.A final version is expected to go for a vote in both chambers by August.

3. Pi Network Misses Binance Listing Again

The Pi Network community faced another blow today as Binance left it out of the second round of its “Vote to List” campaign. Despite strong community support, Pi was not among the 12 shortlisted tokens. As a result, the Pi coin fell 9.51%, now trading at $0.6086.

Many users who have been mining Pi for years are expressing frustration. The project has often promised major progress but has struggled to meet expectations. Experts suggest that lack of transparency, delayed utility, and uncertain tokenomics may be holding the coin back from major listings.

4. South Korea May Welcome Foreign Crypto Investors

While most markets are down, South Korea is taking steps to open its crypto space to the world. Officials from the country’s Financial Services Commission announced they are reviewing current rules to attract foreign investors to local exchanges.

Currently, strict KYC requirements and capital controls make it difficult for international traders to participate. If the new policies are implemented, it could boost liquidity, strengthen market participation, and help South Korea become a leading player in the Asian crypto market.

What’s Next: Deeper Crash or Recovery Ahead?

With geopolitical tensions and regulatory uncertainty in the air, the market is under heavy pressure. As someone who actively trades and writes about crypto every day, today’s market crash has been one of the most intense I’ve seen in months. Watching BTC dip right after Trump's announcement was a wake-up call about how deeply connected crypto is with global politics now.

However, some analysts believe this could be a short-term correction rather than the start of a long-term bear market.