TL;DR
- The crypto market experienced a historic crash due to Trump’s 25% tariffs on Canada, Mexico, and China, leading to a record $2.23 billion in liquidations.
- Bitcoin’s price plummeted to $91,000, Ethereum fell 20% to $2,300, and altcoins lost between 15% to 30% of their value, with over 723,626 traders liquidated.
- The market crash was driven by investor concerns over a potential global trade war, highlighting the sensitivity of cryptocurrencies to macroeconomic developments.
The crypto market experienced a historic crash, triggered by former President Donald Trump’s 25% tariffs on Canada, Mexico, and China. This move led to a record $2.23 billion in liquidations, marking the largest single-day liquidation event in crypto history. The market turmoil has highlighted the increasing sensitivity of cryptocurrencies to macroeconomic developments.
Details of the Liquidation Event
The massive liquidation event saw Bitcoin’s price plummet to $91,000, its lowest in over three weeks. Ethereum also suffered a significant drop, falling 20% to $2,300. Altcoins were not spared, with many losing between 15% to 30% of their value within the same period.
A total of 723,626 traders were liquidated, with the largest single liquidation occurring on Binance, amounting to $25.64 million. The overall market saw over $188 billion wiped out, surpassing previous significant liquidations during the COVID-19 crash and the collapses of LUNA and FTX.
Impact of Trump’s Tariffs
The market crash was primarily driven by escalating investor concerns over a potential global trade war following Trump’s tariffs. Canada, Mexico, and China have promised retaliatory measures, further heightening investor anxiety and prompting a shift away from riskier assets, including cryptocurrencies.
The tariffs have added pressure to a volatile market, causing a cascade of long-position liquidations, with Ethereum and Bitcoin seeing the heaviest losses.
Market Reaction and Future Outlook
Following the announcement of the tariffs, Bitcoin‘s price found its local bottom just above the $91,000 mark before recovering slightly to $95,607. Despite Bitcoin’s narrative as a hedge against traditional market volatility, its recent performance underscores its growing sensitivity to global economic events.
Ethereum (ETH)
- Price: $2,600.25
- 24h Change: -15.84%
XRP (XRP)
- Price: $2.43
- 24h Change: -15.32%
Solana (SOL)
- Price: $201.00
- 24h Change: -5%
BNB (BNB)
- Price: $582.88
- 24h Change: -11%
Dogecoin (DOGE)
- Price: $0.261
- 24h Change: -13.79%
Cardano (ADA)
- Price: $0.7159
- 24h Change: -19.09%
TRON (TRX)
- Price: $0.2234
- 24h Change: -7.44%
Chainlink (LINK)
- Price: $19.36
- 24h Change: -14.18%
Avalanche (AVAX)
- Price: $25.02
- 24h Change: -17.57%
Analysts predict that Bitcoin and the rest of the crypto market may still see a rebound compared to traditional markets, as digital assets increasingly serve as hedges against inflation and currency devaluation.
