Trump's Tariffs Spark Crypto Bloodbath: Bitcoin Plunges to $91K

Bitcoin and Ether Plummet as Trump Tariffs Rattle Crypto Markets

Bitcoin tumbled to $91,000, and Ether plunged as Trump's tariffs on Canada and Mexico sparked a global trade war, sending shockwaves through the crypto market. The market capitalization of cryptocurrencies fell by 12%, with the broad-based CoinDesk 20 (CD20) losing 10%. Bitcoin dropped 6%, while major altcoins like XRP, Dogecoin, and Cardano's ADA fell more than 25%.

The crypto market experienced a wave of liquidations, with over $2.2 billion in total liquidations, the highest this year and among the biggest such levels in the past year. The largest single liquidation order happened on Binance, a tether-margined ETH trade valued at $25 million. Traders cautioned of further losses as the week progressed.

The market correction stems from a trade war that U.S. President Donald Trump has seemingly ignited with 25% tariffs being placed on Canada and Mexico. The move has caused immediate disruptions in North American trade relations, with both countries threatening retaliatory tariffs. Financial markets are concerned about the potential for increased costs on goods, impacting industries from automotive to agriculture. The interconnected economies of these nations suggest that this tariff imposition could lead to a broader economic slowdown, threatening jobs and raising costs for consumers.

Analysts predict a Bitcoin surge as Trump's tariffs weaken the dollar. While the immediate impact has been a sharp sell-off across crypto assets, some analysts suggest that these policies could drive Bitcoin prices higher in the long run by weakening the US dollar. However, the short-term market reaction has been bearish, with Bitcoin shedding approximately 7.2% over the past week.

The cryptocurrency market experienced a dramatic sell-off, with over $1 billion in long and short liquidations over the weekend. The market turbulence followed US President Donald Trump’s announcement of impending tariffs on imported goods, a move that triggered widespread risk-asset sell-offs. According to Coinglass data, more than 450,000 traders were liquidated in 24 hours, amounting to $1.79 billion in total. Long liquidations made up the majority at approximately $1.57 billion, while short