Crypto Market Tumbles as Trump’s Trade War Fears Trigger 10% Drop Across Major Tokens

Crypto Market Tumbles as Trump's New Tariffs Spark Global Trade Tensions

  • Major cryptocurrencies experience significant drops, with most falling 10% or more amid trade war concerns.
  • Bitcoin trades at $96,879, showing relative stability with a 5% decline compared to double-digit losses in other cryptocurrencies.
  • Ethereum, Solana, and XRP lead market losses with declines ranging from 10% to 15%.
  • Futures liquidations exceed $900 million in 24 hours, with Bitcoin accounting for $180 million.
  • Trump’s new tariff policies against major trading partners trigger market uncertainty and risk-off sentiment.

Cryptocurrency markets faced severe downward pressure as geopolitical tensions escalated following President Donald Trump‘s implementation of new tariffs against major trading partners, causing investors to flee risk assets and leading to substantial losses across digital currencies.

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Bitcoin, the leading cryptocurrency, demonstrated relative resilience by declining 5% to $96,879, while other major cryptocurrencies experienced more dramatic losses. Ethereum, the second-largest cryptocurrency by market capitalization, tumbled 10% to $2,940, while XRP suffered a 15% decline to $2.54.

The sell-off intensified after Trump’s announcement of tariffs against Canada, Mexico, and China, with market sentiment deteriorating further following retaliatory measures from these nations. Solana, which hosts Trump’s meme coin, dropped below $200, representing a 12% decrease, while Dogecoin plummeted 16% to $0.27.

On his social media platform Truth Social, Trump warned of potential economic challenges ahead, stating “Will there be some pain? Yes, maybe (and maybe not!). But we will make America great again, and it will all be worth the price that must be paid.”

The market turbulence triggered significant liquidations in cryptocurrency futures markets, with data from CoinGlass showing over $900 million in positions liquidated within 24 hours. Bitcoin-related liquidations led the pack at $180 million, highlighting the magnitude of the market correction and its impact on leveraged positions.

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The cryptocurrency market’s reaction mirrors historical patterns where global trade tensions have prompted investors to reduce exposure to high-risk assets. This latest downturn emphasizes the growing correlation between cryptocurrency markets and broader macroeconomic events, particularly those affecting international trade relations.

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