President Donald Trump’s announcement of a proposed 100% tariff on imports from China has led to a significant sell-off in the cryptocurrency market. This development transpired late Friday, triggering an unprecedented liquidation event within the crypto space.
Massive Cryptocurrency Sell-Off
The cryptocurrency market faced severe consequences following Trump’s tariff threat, which contributed to total liquidations reaching $18.28 billion by 3:47 p.m. ET. Prominent digital currencies such as Bitcoin, Ether, and Solana were particularly impacted.
Liquidation Statistics
- Bitcoin: $5 billion liquidated
- Ether: $4 billion liquidated
- Solana: $2 billion liquidated
Market Declines
These losses occurred amid a broad market downturn, with the Nasdaq and S&P 500 experiencing their most significant drops in six months. As of 3:45 p.m. ET, Bitcoin was valued at $111,616.20, having previously fallen to $103,000 earlier that day.
On Friday, Ether peaked at $4,365.63 but plummeted to $3,742.88, marking a 14.2% decline. Solana also suffered, dropping from $223.10 to $178.72, a nearly 20% reduction.
Context of Cryptocurrency Gains
Despite this setback, cryptocurrencies had seen substantial gains under Trump’s administration. Initially skeptical, the president’s more favorable stance on digital assets led to notable market developments, including his participation in crypto conventions and the introduction of a meme coin.
Recent Changes in Crypto Policy
Trump’s administration also permitted digital assets to be included in 401(k) plans through an executive order. This move contributed to Bitcoin reaching a record high of $124,000 last week.
Ongoing Trade Tensions
The cryptocurrency sell-off coincides with renewed trade tensions between the United States and China. These tensions escalated when China imposed stricter export restrictions on vital rare earth minerals just days before the tariff proposal.
