Three words sent crypto markets into a tailspin: presidential tariff announcement. President Trump’s bombshell declaration of a 10% base tariff sent shockwaves through global markets, and crypto wasn’t spared the carnage. In less than half a day, the crypto market hemorrhaged a staggering $140 billion, proving once again that digital assets aren’t exactly the safe haven some thought they were.
Crypto’s supposed independence from traditional markets shattered as a single tariff announcement wipes out billions in digital wealth.
The numbers tell a brutal story. The total crypto market cap nosedived from $2.77 trillion to $2.63 trillion faster than you can say “economic panic.” Bitcoin, the supposed king of crypto, tumbled from its lofty perch at $87,000 to $83,662 in what felt like minutes. And that was just the beginning. Within days, BTC was gasping for air at $76,500, down a painful 12%. So much for digital gold. The sharp decline marked a clear end to the bull market phase that had dominated the crypto landscape for months.
Ethereum holders had it even worse, with XRP and Dogecoin both seeing drops over 10%. The second-largest cryptocurrency got absolutely pummeled, with liquidations reaching astronomical levels. One unfortunate whale watched helplessly as 67,570 ETH – worth over $106 million – vanished in a single liquidation. Talk about a bad day at the office.
The carnage spread across the entire crypto ecosystem, with altcoins joining the freefall and even stablecoins showing cracks in their armor. The damage tally? A mind-numbing $1.1 billion in leveraged positions wiped out in 24 hours. Long traders took the brunt of it, kissing goodbye to $840 million. Meanwhile, gold surged above $3,162 as investors sought refuge from the crypto bloodbath.
The whole debacle highlighted an uncomfortable truth: crypto markets are increasingly dancing to the same tune as traditional finance. When macro fears strike, digital assets aren’t immune. They’re just as susceptible to panic selling as any other risk asset.
The aftermath left traders shell-shocked and analysts scrambling to explain the correlation between crypto and conventional markets. One thing became crystal clear: in times of economic uncertainty, even Bitcoin’s biggest believers can’t escape the gravitational pull of global market forces. Welcome to the new normal of interconnected markets.
