Trump tariffs trigger crypto market crash: Liquidations exceed $2.27 billion
The new tariffs created a ripple effect of panic
The global cryptocurrency market has suffered a major shock after President Donald Trump's new duties sent shockwaves through the market.
As traders scrambled to liquidate their positions, the market saw over $2.27 billion in liquidations, with ETH dropping by over 20% to reach $2,300—its worst intraday plunge since May 2021, Сryptpolitan reported.
The tariffs, which had initially raised fears about the broader economic impact, triggered mass sell-offs in both Bitcoin (BTC) and Ether (ETH), while altcoins suffered even steeper declines. BTC dropped by nearly 7%, dipping into the $92,000 range. Overall, the crypto market cap shed nearly $500 billion, with a total market value of $3.12 trillion—an 8% decrease in just 24 hours.
Massive liquidations as traders bet on a bullish market
Of the $2.27 billion in liquidated positions, $1.89 billion (or 83%) of those were long bets, indicating that many traders had hoped the bullish trend would continue after Trump’s return to the political spotlight. However, the new tariffs created a ripple effect of panic, and the fear and greed index showed a sharp decline in investor sentiment.
The largest liquidation order was recorded on Binance, where a $25.64 million liquidation of an ETH/BTC position took place. The event also exposed the fragility of the market, which had previously shown signs of steady growth.
Liquidation data on crypto exchanges. Source: Coinglass
Market implications
The crash and its aftermath will likely have lasting effects on the crypto market’s short-term trajectory. With uncertainty still surrounding U.S. trade policies, crypto traders are expected to continue navigating volatile conditions.
As the market attempts to recover, the potential for regulatory changes and ongoing geopolitical tension will remain top of mind for investors looking to stabilize their portfolios in the near future.
We've previously informed Bitcoin dominance hits 62% as crypto market sinks on U.S. tariff war.
