Trump’s Tariff Announcement Triggers $1 Trillion Crypto Sell-off

Donald Trump announced a 100% tariff on Chinese exports, leading to a $1 trillion crypto market sell-off.

The tariff declaration caused BTC and ETH prices to plummet, highlighting cryptocurrency’s sensitivity to global political events.

$1 Trillion Wiped: Trump’s Tariff Shakes Crypto

Donald Trump declared a 100% tariff on Chinese exports, effective November 2025. The announcement caused a severe crypto market reaction, erasing substantial capitalization and impacting investor confidence.

The tariff by U.S. President Donald Trump sparked chaos, impacting major assets like BTC and ETH. The decision introduced significant market volatility in cryptocurrencies, driven by major financial leaders’ reactions.

Massive Liquidations as $20 Billion Positions Dissolve

Cryptocurrency markets witnessed massive outflows as panic spread among retail and institutional investors. BTC and ETH suffered steep declines, while major altcoins also experienced cascading sell-offs.

The announcement prompted extensive financial impacts, with over $20 billion in leveraged positions liquidated. Chris Mellor noted the event as further proof of crypto’s integration into global market dynamics.

Chris Mellor, Head of ETF Product Management, Invesco, – “Bitcoin now trades like a high-beta macro asset; it reacts to global trade policy, inflation data, and central bank signals. That’s a sign of integration, not immaturity.”

Experts Debate Tariff’s Unprecedented Crypto Crash

Observers liken the sell-off to previous crypto market crashes. However, Daniel Parreira suggested the recent liquidation outpaced historic norms due to the surprise tariff announcement.

With the tariff’s implementation looming, experts foresee ongoing volatility. Analysts believe the blockchain’s fundamentals remain sound despite external economic pressures affecting digital currency valuations.

Daniel Parreira, SVP, Thunes, – “The sell-off was mechanical. It had little to do with blockchain fundamentals and everything to do with macro panic.”