While Trump’s latest tariff bombshell sent traditional markets reeling, the cryptocurrency world took an even nastier hit.
Bitcoin tumbled below $100,000, settling around $95,000, while Ether got absolutely pummeled with a 27% nosedive before somewhat recovering.
Crypto markets reel as Bitcoin crashes below $100K and Ethereum takes a brutal 27% hit in latest market carnage.
And those Trump-themed memecoins? Let’s just say they’re not making anyone great again, plunging 75% from their peaks.
The damage was brutal and widespread. Over $360 billion vanished from the total crypto market value faster than you can say “trade war.” The recent trade policy shifts underscore Trump’s renewed focus on protectionist measures.
The small-cap crypto index recorded its worst two-day bloodbath in nearly three years. Small-cap tokens saw a combined decline of 21% on Monday following significant losses the previous day. So much for digital gold being a safe haven.
Crypto-related stocks weren’t spared either. Coinbase, Robinhood, and MicroStrategy shares all took hits of 5% or more. The Fear and Greed Index showed extreme fear levels, further amplifying the market selloff.
Mining companies like Mara Holdings and Riot Platforms watched their stock prices crater in premarket trading. The irony? These same stocks had rallied after Trump’s November election victory.
The catalyst? Trump’s sudden announcement of massive tariffs – 25% on Canadian and Mexican goods, 10% on Chinese products, with threats of more to come for Europe and the UK.
Markets hate uncertainty, and nothing says uncertainty quite like a global trade war. The immediate result was a massive $2.2 billion liquidation of bullish crypto positions within 24 hours.
Despite his recent crypto-friendly stance and executive order to create clearer digital asset rules, Trump’s tariff moves sparked fears of inflation and delayed interest rate cuts.
The macro shock forced leveraged positions to unwind, creating a domino effect across crypto markets.
Ethereum got hit particularly hard in the DeFi space, though Bitcoin showed some resilience compared to smaller tokens.
Global markets responded with synchronized drops across North America, Asia, and Europe.
Trump warned Americans to brace for economic pain from the tariffs, set to take effect February 1, 2025.
Meanwhile, affected countries are already planning retaliatory measures.
Welcome to 2025’s first major market meltdown – brought to you by tariffs and leverage.
