Trump’s Tariff Threat Triggers Huge Crypto Liquidations

Donald Trump’s announcement of “massive” tariffs against China led to a $500 million crypto market liquidation, primarily impacting assets like Bitcoin, Ethereum, and Solana.

This significant sell-off underscores the volatility of crypto markets, highlighting geopolitical tensions’ influence on digital currencies and the potential for swift market adjustments.

Donald Trump announced new tariffs against China, causing $500M in cryptocurrency liquidations and affecting major assets like Bitcoin and Ethereum.

The tariff threat highlights market instability and widespread asset sell-offs influencing investor behavior.

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Trump’s Tariff Triggers $500M Crypto Sell-Off

Donald Trump’s tariff announcement was made on Truth Social, where he accused China of monopolizing rare-earth metals. This triggered a massive sell-off, impacting the cryptocurrency market significantly.

“China has become increasingly hostile—they’re cheating Americans and monopolizing rare earths. My scheduled meeting with Xi is off until they act fairly.” — Donald Trump, President, United States

Announced tariffs have resulted in dropped crypto prices. China expanded export controls, including levying fees on U.S. vessels, escalating tensions affecting global trade dynamics.

163,000 Traders Affected by Massive Liquidations

The crypto market witnessed more than $500M in liquidations, affecting over 163,000 traders. Bitcoin and Ethereum saw significant price drops, illustrating volatility in response to policy changes. Over $500M in crypto futures liquidated in 24 hours, affecting over 163,000 traders.

There were no immediate project fund changes, but inflows into Bitcoin ETFs rose, indicating some institutional accumulation amidst the downturn.

Leveraged Trades Drive Rapid Liquidation Pace

Compared to Trump’s 2018-2019 trade maneuvers, this event prompted faster liquidations due to higher leveraged trades. Cryptocurrency markets have previously reacted similarly to trade tensions. Largest single liquidation order: ETH/USD $11.97 million.

With ongoing geopolitical strains, experts note a potential for continued market volatility. Historical patterns suggest increased swings, especially in leveraged crypto derivatives trading.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.