Trump's Tariffs Trigger $1B Crypto Wipeout

Crypto markets experienced a significant downturn on Monday, with a total wipeout of over $1 billion in liquidations following the confirmation of U.S. President Donald Trump's tariffs on Mexico and Canada. This marks the second instance where the president's tariff policies have influenced the crypto market, highlighting Bitcoin's growing sensitivity to macroeconomic events.

Trump's announcement, which came during the late hours of the U.S. session, triggered a sell-off in crypto markets. Bitcoin's price slipped below the $92,000 threshold, and the total market capitalization lost up to 7% of its value. According to data from Coinglass, the crash resulted in nearly $1 billion in total liquidations across the crypto industry.

Coinglass data also showed that the majority of liquidated positions were long positions, as Bitcoin's price dropped to $91,514. This is not the first time that Trump's tariff narrative has influenced the crypto market. In early February, over $2 billion was wiped out from the crypto market following President Trump's imposition of a 25% tariff on imports from Canada and Mexico.

Following reports of a reprieve on Trump's tariffs, crypto markets recovered. Bitcoin's Coinbase Premium soared to a local high in the immediate aftermath of the pause three weeks ago. These events align with a recent JPMorgan survey, which showed that tariffs and inflation would be the top market influences in 2025.

Eddie Wen, the global head of digital markets at JPMorgan, also cited market fluctuations in response to new headlines about the Trump administration's plans, noting "knee-jerk reactions in the marketplace." Despite these corrections, MicroStrategy chair Michael Saylor saw the recent crash as an opportunity to buy Bitcoin at a discount, stating, "Bitcoin on sale." Similarly, Robert Kiyosaki, the author of Rich Dad Poor Dad, urged investors to buy BTC as markets crashed, calling it a prime wealth-building moment amid global economic uncertainty.

As of this writing, Bitcoin traded for $92,047, representing a 3.4% drop since Tuesday's session opened. While the crypto market remains volatile, investors and traders continue to monitor macroeconomic events and geopolitical developments for potential impacts on the market.