President Donald Trump of the United States announced a 50% tariff on European Union imports and a 25% levy on imported Apple iPhones late Friday, causing significant losses in the cryptocurrency sector.
Bitcoin, which had been trading above $111,000, plummeted to approximately $108,600, erasing intraday gains and sparking a broader market sell-off.
The crypto market saw over $500 million in bullish bets liquidated in the past 24 hours, reflecting heightened volatility and trader caution amid fears of a renewed trade war.
Market Impact and Liquidations
The sharp decline in Bitcoin’s price triggered a cascade of liquidations across major cryptocurrencies. Bitcoin-tracking futures suffered losses of $181 million, while Ether futures lost $142 million.
Altcoins, including Solana (SOL), XRP, and Dogecoin (DOGE), contributed an additional $100 million in liquidations. The largest single liquidation was a $9.53 million BTC-USDT swap on the OKX exchange, underscoring the intensity of the market’s reaction.
Liquidations occur when exchanges forcibly close leveraged positions due to insufficient margin, often signaling market extremes such as panic selling or potential turning points.
Did You Know?
Bitcoin’s largest single-day liquidation event in 2025 occurred on January 15, when $750 million in leveraged positions were wiped out during a flash crash triggered by regulatory rumors.
Broader Market Sentiment
The crypto market’s downturn coincided with a destabilized macroeconomic environment, as Trump’s tariff threats raised concerns about global trade disruptions.
Real-time data indicates Bitcoin is currently trading at $108,750, with a 3.2% decline over the past 24 hours. Ether has dropped 4.1% to $3,850, Solana is down 5.3% at $185, and Dogecoin has fallen 6.7% to $0.22.
Despite recent momentum from ETF inflows and institutional interest, the sudden volatility has left traders wary. Analysts suggest that large-scale liquidations could indicate an overreaction, potentially setting the stage for a price reversal if sentiment stabilizes.
ALSO READ | Trump’s $TRUMP Meme Coin Dinner Sparks Ethics Firestorm as Investors Gain Exclusive Access
Looking Ahead
The crypto market’s reaction to Trump’s tariff threats highlights its sensitivity to macroeconomic shifts. With trade war fears looming, traders are bracing for continued uncertainty in the coming week.
Some market observers note that Bitcoin’s drop may present buying opportunities for long-term investors, given its historical resilience.
However, caution prevails as global markets digest the implications of the proposed tariffs. The crypto community is now closely monitoring U.S. policy developments and their impact on digital assets.
Comments (0)
Please sign in to leave a comment
No comments yet. Be the first to share your thoughts!