Crypto traders liquidate whopping $2.3bn as Trump tariffs jolt markets

Crypto markets are reeling after US President Donald Trump unveiled new tariffs on Sunday.

Over the past 24 hours, Bitcoin fell 4% to $95,800.

Meanwhile, Ether has plummeted 17% to $2,590, and XRP has plunged 18% to $2.38.

The crypto market’s total value has tanked 9% to $3.2 trillion, according to CoinGecko, and crypto has seen $2.3 billion in liquidations over the past 24 hours, according to data from CoinGlass.

“External pressures — like the US escalating tariffs on Mexico, Canada, and China — are rattling global markets and spilling into crypto,” Saul Rejwan, managing partner at crypto investment firm Masterkey VC, told DL News.

The retreat in crypto prices mirrors a broader pullback. Nasdaq futures dropped 1.8%, and SP 500 futures sunk 1.6%.

Trump trade war

Investors are grappling with the implications of Trump’s newly announced tariffs against Mexico, Canada, and China, set to kick in on Tuesday. They include 25% duties on Canada and Mexico, with a 10% tariff on China.

During the 2024 presidential campaign, economists warned about the inflationary effects of Trump’s proposed trade war and economic policies.

Still, after the presidential election, markets rallied.

In December, Bitcoin surpassed the $100,000 mark for the first time and regularly notched all-time highs.

Now, the trade war “has triggered a ‘risk-off’ environment globally,” Andri Fauzan Adziima, a research analyst at crypto exchange Bitrue, told DL News.

High volatility

Although some investors see cryptocurrencies like Bitcoin as a hedge against inflation and macroeconomic headwinds, the tokens “remain highly sensitive to liquidity conditions and broader market sentiment,” Adziima said.

And Rejwan, the managing partner at Masterkey VC, foresees more volatility for crypto in the near future.

“Until the next big macro event — whether it’s a regulatory shift, ETF inflows, or geopolitical developments — crypto is likely to remain choppy,” he said.

Crypto market movers

• Bitcoin has lost 4% in the past 24 hours and is trading at $95,705.
• Ethereum is down 17% over the same period to $2,591.

What we’re reading

• El Salvador passes Bitcoin-limiting bill — Bukele buys more anyway ― DL News
• Solana Meme Coin Dogwifhat Has No Deal With Las Vegas Sphere, Venue Says ― Decrypt
• How to check the market’s pulse ― Milk Road
• What you missed this week ― Milk Road
• 21Shares files Polkadot ETF as altcoin options grow, but ‘the market will decide’ their fate ― DL News

Ben Weiss is a Dubai-based reporter for DL News. Got a tip? Email him at bweiss@dlnews.com.