Bitcoin News Today: Crypto's $280B Collapse Mirrors 2020 as Trade War Fears Surge

The global crypto market experienced a severe sell-off following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering widespread liquidations and sharp declines in major cryptocurrencies. Bitcoin (BTC) fell below $110,000, a 12% drop over 24 hours, while Ethereum (ETH) and Solana (SOL) slid 16% and 20%, respectively. The total crypto market capitalization plummeted by $280 billion within hours, with over $7 billion in leveraged positions liquidated, according to CoinGlass data Coindesk^[1].

The crash mirrored broader market turmoil, as the S&P 500 erased $1.2 trillion in value within 40 minutes of Trump's Truth Social post. Analysts attributed the sell-off to renewed fears of a U.S.-China trade war, exacerbated by Trump's cancellation of a planned meeting with Chinese President Xi Jinping and threats of additional export controls on rare earth metals. "The altcoin complex got absolutely eviscerated," noted Zaheer Ebtikar of Split Capital, highlighting the market's sensitivity to geopolitical tensions Beincrypto^[2].

Exchange platforms faced significant strain, with Binance and Coinbase reporting system latency and degraded performance due to surging liquidation volumes. Binance emphasized user fund safety while monitoring the situation, while Coinbase investigated technical issues during the crisis TheStreet^[3]. The volatility underscored crypto's growing correlation with traditional markets, as institutional traders adopted a "risk-off" stance amid macroeconomic uncertainty.

Historical comparisons to the 2020 pandemic-induced crash were drawn by traders, with Bob Loukas of X noting the "Covid-level nukes" in terms of market impact. Ram Ahluwalia of Lumida Wealth linked the selloff to "overbought" conditions and Trump's tariff rhetoric. The immediate-term outlook remains fragile, with Bitcoin hovering near $115,000–$118,000 and altcoins under sustained pressure. Analysts caution that further U.S. trade measures or Chinese retaliation could prolong the downturn for weeks, potentially evolving into a broader macro correction akin to the 2019 trade war Decrypt^[4].