US President Donald Trump’s tariff policies are impacting the global economic market, and crypto, too, bears the brunt. This morning was marked by Bitcoin falling as low as $93,000 in the early hours, alongside high crypto liquidations.
US Tariff Policy Triggering Crypto Slump
Caroline Bowler, chief executive officer of BTC Markets, pointed out that Trump’s tariff war is affecting the entire market. She added, “Concerns about trade wars and stagflation, triggering recessions, are cascading across altcoins and Bitcoin.”
This slump was surprising, as Trump’s presidential election campaign was one of the first pro-crypto campaigns of its kind. In fact, when Trump emerged victorious, the crypto market experienced a massive bull run. Additionally, Trump also signed an executive order creating a working group tasked with introducing clear regulations for US crypto firms within six months. The group will also examine the creation of a crypto stockpile.
As a result, experts believe that Ether is facing greater pressure compared to Bitcoin, Solana, and Ripple—primarily because the latter are more likely to be included in the US digital asset reserves as assets tied to American-led companies.
Moreover, high liquidations have aggravated the crypto market’s downturn.
The major sell-off from traders followed Trump’s announcement of a 25% tariff on imports from Mexico and Canada, along with an additional 10% tariff on Chinese goods. The policy was implemented under the International Emergency Economic Powers Act, with the government citing an “extraordinary threat” posed by illegal immigration and the fentanyl crisis.
The impact of the tariff changes was significant, as Bitcoin, often seen as a hedge against economic uncertainty, suffered a sharp decline, triggering a wave of risk-off sentiment. The abrupt drop resulted in $399.60 million in 24-hour Bitcoin liquidations, primarily from overleveraged long positions.
As a result, Bitcoin is currently pushed at $93, 928, after a dip of 5.57% in the past day. Overall, in the past 24 hours , 714,942 traders were liquidated and the total liquidations is at $2.17 billion.
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