Crypto market plunges on Trump trade tariffs against China

Bitcoin

Crypto market plunges on Trump trade tariffs against China

The cryptocurrency market has experienced a sharp selloff following the implementation of U.S. President Donald Trump’s tariffs on Chinese goods.

Bitcoin dropped 4.1% to $76,550, while Ethereum saw an even steeper decline of 8.3% over the past 24 hours, marking its lowest trading point since March 2023.

Bitcoin briefly fell below the $75,000 mark late Tuesday, just hours before the tariffs took effect.

The cryptocurrency is now down approximately 30% from its January peak of $109,000, reached shortly before Trump’s inauguration.

Ethereum, the second-largest cryptocurrency by market capitalization, has fared worse, trading at $1,435.43—a staggering 70% below its all-time high of $4,891.70 set in November 2021.

Market impact and broader financial turmoil

Major altcoins have also suffered significant losses. Dogecoin dropped 16.3% on the day, while Solana and Cardano fell 18% and 23.7% over the past week, respectively.

Liquidation data from CoinGlass reveals widespread distress, with total liquidations reaching $411 million in the last 24 hours.
The crypto market’s downturn mirrors broader financial market instability. Asian markets opened sharply lower on Wednesday, with Japan’s Nikkei 225 falling 2.6% and Australia’s ASX 200 losing 2%.
Meanwhile, the S&P 500 declined 1.5% on Tuesday, bringing its losses since mid-February to nearly 20%, edging closer to bear market territory.

The market disturbance coincides with key movements in bond and yield markets as the 10-year Treasury yield jumped between 4.2% and 4.4% late Tuesday, representing one of its fastest intraday climbs since World War II.

Also, on Tuesday, the first Treasury auction of three-year notes following Trump’s Liberation Day witnessed the weakest demand since late 2023.