Trump’s 100% Tariffs on China Ignite $18 Billion Crypto Market Sell-Off
Trump’s Tariff Threat Triggers Unprecedented Cryptocurrency Sell-Off
President Donald Trump’s announcement of a possible 100% tariff on Chinese imports on Friday led to a dramatic downturn in the cryptocurrency market. This large sell-off illuminated risks within the leverage space, impacting major digital currencies such as Bitcoin, Ether, and Solana.
Cryptocurrency Market Liquidations Hit Record High
The overall impact on digital assets was significant, with CoinGlass reporting total liquidations of $18.28 billion as of 3:47 p.m. ET. This steep decline marks the largest liquidation event in cryptocurrency history, according to a statement from CoinGlass on X. The sell-off wave extended beyond cryptocurrencies, affecting the stock market where both Nasdaq and S&P 500 recorded their sharpest six-month drops on Friday.
Bitcoin, Ether, and Solana Experience Sharp Declines
In the last 24 hours, approximately $5 billion of Bitcoin was liquidated, alongside $4 billion of Ether and $2 billion of Solana. Bitcoin itself saw a nearly 10% drop over five days, trading at $111,616.20 as of 3:45 p.m. ET, rebounding slightly from a dip to $103,000 earlier in the day. Ether’s price fell 14.2%, from $4,365.63 to $3,742.88. Solana experienced a steep decline, plummeting from $223.10 to $178.72 by 3:45 p.m. ET, marking nearly a 20% decrease.
Trump’s Role in Cryptocurrency Volatility
Since taking office, President Trump has significantly influenced the cryptocurrency market. His shift from calling Bitcoin “based on thin air” to actively engaging with digital currency enthusiasts has contributed to its recent gains. Notably, Trump’s decision to allow digital assets in 401(k) plans spurred Bitcoin to a record high of $124,000 just last week. However, the recent tariff threat underscores the volatile nature of the market amid persistent U.S.-China trade tensions.
Trade Tensions Add to Market Uncertainty
The ongoing trade negotiations between Washington and Beijing remain rocky, with recent escalations in the form of export restrictions on critical rare earth minerals imposed by China. These developments only add uncertainty, affecting both global markets and investor confidence in digital assets.
Emegypt continues to provide up-to-date coverage on this unfolding story, offering insights into how international trade policies may shape the future of the cryptocurrency landscape.
