The cryptocurrency market experienced a significant downturn as President Donald Trump threatened 100% tariffs on Canada, contributing to a $100 billion loss. This announcement has intensified concerns over a potential U.S. government shutdown, stalling crypto policy developments and driving Bitcoin prices below $87,000. Altcoins also suffered declines, reflecting the broader market's bearish sentiment. The political uncertainty has led to a $100 million withdrawal from the crypto space, highlighting the impact of geopolitical actions on market stability. The Senate's challenges in passing essential funding bills further complicate the situation, with potential implications for crypto policies like the CLARITY Act. Investors remain cautious amid the volatility, with historical trends suggesting prolonged market instability following such political announcements.