Trump Tariffs Spark Crypto Bloodbath, $300B Wiped Out

Billions Wiped Out As Trump Tariffs Spark Renewed Inflation Fears

The cryptocurrency market is facing a renewed sense of unease, with the odds of a significant bitcoin (BTC) price correction increasing sharply amid escalating trade tensions and inflation concerns. Prominent asset management firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) in the country. South Korea’s so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off.

Bitcoin’s price has surged to almost $110,000 per bitcoin, helped by Elon Musk’s leaked plans for crypto in the White House. U.S. Federal Reserve chair Jerome Powell has told banks they are permitted to offer bitcoin and crypto to clients as fears emerge the bitcoin price could be on the verge of a crash. Banks are perfectly able to serve crypto customers as long as they can understand and service the risks, Powell said at a press conference this week after the Fed paused its interest rate cutting cycle. Wall Street banks “have to be pretty sure” their bitcoin and crypto activities are “safe and sound," Powell added.

Crypto prices have taken a huge step lower, wiping around $300 billion from the combined market that has been hard hit by the rapidly escalating trade war sparked by U.S. president Donald Trump’s volley of tariffs on goods entering the U.S. from China, Canada, and Mexico. The tariffs, due to come into effect Tuesday morning, have also hit global stock markets, with investors balking at the prospect of tighter trading conditions.

A tidal wave of fear, uncertainty and doubt (FUD) has been unleashed across the cryptocurrency market after U.S. president Donald Trump’s Friday tariff announcement. The prospect of prolonged higher interest rates has rattled all global markets. While bitcoin has dropped below the $100,000 mark the King of Crypto is once again proving itself to be in a class of its own in marked contrast to altcoins bleeding dark red across the board.

Bitcoin plummeted overnight to just over $91,000, down almost 10% at its lowest, before rebounding to