- Trump’s tariff announcement sparks a massive sell-off in cryptocurrencies, causing $2.23B in liquidations.
- Bitcoin drops 6.5%, reaching a low of $92,500; Ethereum loses 20% of its value.
- XRP, Dogecoin, and Cardano plunge 25%, reversing all recent gains.
The crypto market has been hit hard following U.S. President Donald Trump’s announcement of new tariffs, leading to $2.23 billion in liquidations within just 24 hours. Bitcoin saw a significant drop of 6.5%, reaching its lowest price in weeks, while Ethereum and several altcoins faced even steeper declines.
The tariffs, including 25% on imports from Mexico and Canada, have raised fears of inflation and a global economic slowdown, shaking investor confidence in risk assets like crypto.
Trump’s Tariff Announcement Triggers Major Crypto Market Sell-Off and $2B in Liquidations
President Donald Trump’s tariff imposition on Mexico, Canada, and China has sparked a major sell-off in the cryptocurrency market, with over $2.23 billion in liquidations recorded across long and short positions. Bitcoin, Ethereum, and other altcoins saw sharp declines, with the largest crypto asset falling 6.5%, testing crucial support levels at $92,500. Other altcoins, including XRP and Dogecoin, also faced a significant plunge of 25%, signaling broad market panic.
The market’s response highlights its increasing sensitivity to geopolitical developments. Tariffs, particularly those impacting North American trade relations, have led to fears of inflation, increased costs, and economic slowdown. Cryptocurrencies, often viewed as risk proxies, were particularly vulnerable to the economic uncertainty, resulting in a rapid market adjustment. The crypto fear index has flipped to 44, signaling a shift in sentiment from greed to fear.
Ethereum’s drop of 20% was even more severe than Bitcoin’s, raising concerns about its long-term stability amid growing market unrest. Liquidations across futures markets were particularly notable, with Ether-tracked products losing over $600 million in the past 24 hours. Analysts have warned that the steep sell-offs may not be over and that a more extended market downturn could emerge in the coming days as the effects of the tariffs ripple through the global economy.
The impact of the tariffs has left the broader cryptocurrency market in disarray, with several key tokens shedding a substantial portion of their value. Despite the panic, some investors are hoping for a recovery, considering the current market conditions as a potential opportunity to “buy the dip.” However, the fear remains palpable, as the market faces uncertainty driven by global trade tensions and the broader economic impact of the tariff decisions.
The recent sell-off in the crypto market, triggered by Trump’s tariff announcement, has led to significant losses and liquidations. With growing concerns about global trade and inflation, the market is poised for further volatility, leaving traders on edge.
“Crypto is really the only way to express risk over the weekend, and on news like this, crypto resorts to a risk proxy.” – Chris Weston, head of research at Pepperstone
