Cryptocurrencies Crash 25% as U.S. Tariffs Spark Global Market Turmoil
2min read Cryptocurrencies experienced a significant downturn, with a 25% crash in value over the past 72 hours. This dramatic decline was triggered by the implementation of new tariffs, which sent shockwaves through global markets. The volatility in the crypto market mirrored the broader financial turmoil, as stocks also plummeted in response to the tariff chaos. The tariffs, announced by the U.S. president, have had a ripple effect across various sectors, including technology and steel, leading to widespread market instability.
The immediate pressure came from the White House. On April 3, the U.S. president hiked tariffs on Canadian and Mexican imports and slapped a 20% increase on Chinese goods. That sent traders scrambling. Bitcoin dipped below $82,000 within hours of the announcement. China’s threat of a 34% retaliation only made things worse. With fears of a full-blown trade war returning, investors are dumping volatile assets—and crypto’s first in line.
But it wasn’t just panic selling. The drop triggered over $1.4 billion in liquidations across crypto markets in just 24 hours. That included more than 450,000 traders who were forced out of long positions. As prices dropped further, margin calls snowballed. This liquidation wave hit altcoins especially hard, sending Ethereum (ETH-USD) and Solana (SOL-USD) deeper into the red. The domino effect didn’t stop until markets had shaved off billions in value.
While markets crumbled, the U.S. Department of Justice dropped a shocker. In a memo, Deputy Attorney General Todd Blanche confirmed the immediate shutdown of the DOJ’s National Cryptocurrency Enforcement Team. “The Department of Justice is not a digital assets regulator,” Blanche said. The move follows the U.S. president’s executive order to bring “regulatory clarity,” which many now interpret as deregulation. The DOJ will no longer prosecute crypto platforms for regulatory violations unless there’s clear criminal intent.
Amid the bloodbath, long-term holders seem unfazed. According to Binance, wallets holding Bitcoin for more than 155 days have accumulated over 400,000 BTC since February. Total long-term holdings are now above 13.5 million. That kind of conviction doesn’t come from day traders—it comes from people betting on the next decade.
The tariff onslaught has had far-reaching consequences, affecting not only the U.S. but also global markets. The implementation of these tariffs has led to a trade war, with China retaliating with its own set of tariffs. This escalation has resulted in a significant drop in stock prices across Asia and Europe, further exacerbating the market mayhem. The situation has been described as a "black Monday" for markets, with equities collapsing as a result of the trade tensions.
The impact of the tariffs extends beyond the financial markets, affecting industries such as steel and technology. Companies like cleveland-cliffs, which once benefited from protectionism, are now facing challenges due to the sweeping import taxes. The trade war has also raised concerns about the supply chain risks for companies like tesla, which has a global Gigafactory network but remains exposed to risks in China and other regions.
The market turmoil has led to a heightened sense of uncertainty, with investors and analysts closely monitoring the situation. The volatility in the crypto market, in particular, has raised concerns about the resilience of digital assets in the face of economic shocks. The tariffs have not only affected the financial markets but also have broader implications for global trade and economic stability. The situation remains fluid, with the potential for further market disruptions as the trade war continues to unfold.
