Trump’s new tariffs trigger historic crypto crash, losses mount
Donald Trump, President of the US (photo: Getty Images)
Former US President Donald Trump’s threat to impose new 100% tariffs on China has triggered a record crash in the cryptocurrency market, with liquidations exceeding $18 billion, according to CNN.
The hardest-hit assets were Bitcoin, Ethereum, and Solana, which became the focal point of a wave of forced liquidations of large leveraged and margin investor positions:
- Bitcoin saw liquidations totaling $5 billion, with its price dropping to $103,000 before rebounding to around $111,600.
- Ethereum faced $4 billion in losses, falling from $4,365 to $3,742.
- Solana lost more than $2 billion, plunging nearly 20% to $178.
According to CoinGlass, this was the largest liquidation event in the history of cryptocurrencies.
Panic in the cryptocurrency market coincided with a sharp decline in traditional financial indices — Nasdaq and S&P 500 recorded their worst day in six months, amplifying the wave of mass asset sell-offs.
How Trump influences the crypto market
Trump’s policies previously gave cryptocurrencies a strong boost. The president:
- Began openly addressing the crypto community.
- Launched his own meme coin, sparking a surge of retail investor interest.
- Announced plans to create a U.S. strategic reserve in Bitcoin.
- Allowed cryptocurrency investments in 401(k) retirement plans through an executive order — after which Bitcoin hit an all-time high of $124,000.
However, the escalation of the trade war with China sharply changed investor sentiment. The news of potential 100% tariffs came shortly after Beijing announced restrictions on the export of rare earth minerals - materials critical to US industry.
