Leading cryptocurrencies slacked on Wednesday as President Donald Trump imposed 25% levies on cars not manufactured in the U.S.

What Happened: Bitcoin rose to $88,292.16 early morning but failed to sustain the rally, plunging below $86,000 late afternoon.

Ethereum recorded a steeper decline, nearly 3%, in the last 24 hours. The second-largest cryptocurrency fell below $2,000 in the late afternoon but recouped some losses by evening.

Bitcoin's market dominance increased to 60.5% while Ethereum's share shrank by 1.91% over the last 24 hours. Dogecoin, meanwhile, recorded a healthy gain of 5%.

Cryptocurrency liquidations reached $268.44 million in the last 24 hours, with $186 million in bullish bets getting wiped out. A further $500 million in longs risked liquidation if Bitcoin dropped to $84,285.

Bitcoin's Open Interest fell 2.60% in the last 24 hours. Interestingly, despite the price dip, Ethereum's Open Interest rose 2.95%, suggesting the potential opening of new short positions.

More than 50% of derivatives traders on Binance were positioned long on Bitcoin, according to the Long/Short Ratio.

The market flipped back into "Fear" mode, according to the Crypto Fear and Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $2.85 trillion, following a drop of 0.97% in the last 24 hours.

Stocks pulled back after two straight sessions of gains. The Dow Jones Industrial Average slid 132.71 points, or 0.31%, to close at 42,454.79. The S&P 500 fell 1.12%, ending at 5,712.20, while the tech-heavy Nasdaq Composite lost 2.04% to close at 17,899.01.

The sell-off occurred before Trump announced 25% tariffs on automobiles and certain automobile parts during a press conference. Shares of domestic automakers like General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F) plunged during the session.

Analyst Notes: Popular on-chain blockchain analytics firm CryptoQuant noticed that the Coinbase Premium Index was trending in positive territory, a potential sign of "renewed" interest in Bitcoin.

"Historically, a sustained positive Coinbase Premium has sometimes coincided with upward price momentum, as heightened demand from U.S. investors can bolster global market confidence," CryptoQuant added.

The Coinbase Premium Index is a measure of institutional whales' movement, with high values suggesting they might be accumulating BTC.

Widely followed cryptocurrency analyst Ali Martinez highlighted that stablecoin reserves plateaued in 2025 after a sharp spike in late 2024 due to profit-taking.

"Now that reserves have plateaued, it looks like investors are sitting on the sidelines," Martinez remarked.