Trump's Tariffs Spark $2B Crypto Crash

Bitcoin and altcoins experienced a significant crash following President Trump's announcement of new tariffs, which spooked investors and triggered a wave of liquidations in the crypto market. The crash wiped out approximately $2 billion in leverage liquidations over the past 24 hours, according to Coinglass data.

On Saturday, Trump announced plans to impose a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. These measures, targeting America's three largest trading partners, will take effect on Tuesday. The President framed the tariffs as part of a broader strategy to address border security and combat the opioid crisis, particularly fentanyl trafficking.

Economists warn that Trump's new tariffs could increase consumer costs as businesses pass on additional expenses. While the White House maintains these measures will strengthen American manufacturing, experts caution they could worsen inflation and potentially trigger a trade conflict affecting all nations involved, leading to job losses and supply chain disruptions.

The announcement of these tariffs has triggered volatility in the crypto market as investors reacted to fears of mounting inflationary pressures. Bitcoin fell below $100,000 on Saturday and continued its decline to $92,000, while Ethereum dropped 24% to $2,300, according to CoinGecko data.

The market turbulence led to $1.7 billion in long position liquidations over 24 hours, with Ethereum traders experiencing $528 million in losses and Bitcoin traders facing $421 million in liquidations, Coinglass data shows. The overall crypto market capitalization shrank by approximately 8%, with most crypto assets recording double-digit losses within a day. XRP and DOGE fell 30%, ADA declined 35%, while SOL and BNB each dropped 15%.

Analysts believe that Trump's new tariffs could lead to increased demand for Bitcoin as a hedge against inflation. However, many caution that ongoing market volatility may continue to pressure prices downward in the short term. According to Jeff Park, head of alpha strategies at Bitwise Asset Management, Trump's tariff policies could inadvertently set the stage for a Bitcoin boom. The implementation of new tariffs could weaken the dollar and create conditions favorable for Bitcoin's growth, Park suggests. This comes as the US grapples with the Triffin Dile