Trump’s new 100% tariffs on China triggered $18B crypto sell-off. Learn which coins plunged and how markets are reacting.
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Trump’s 100% Tariffs on China Trigger $18 Billion Crypto Sell-Off
The cryptocurrency market faced a historic shock on Friday as President Donald Trump threatened to impose an additional 100% tariff on imports from China, triggering an $18 billion crypto liquidation. Investors rushed to exit risky positions, causing digital currencies like Bitcoin, Ether, and Solana to plunge dramatically.
This sell-off highlights the vulnerability of leveraged positions in crypto and underscores how macroeconomic tensions, like trade disputes, can ripple through financial markets in unexpected ways.
Crypto Market Faces Massive Liquidations
According to CoinGlass, total liquidations hit $18.28 billion as of 3:47 p.m. ET. Here’s a breakdown of the hardest-hit cryptocurrencies in the last 24 hours:
- Bitcoin: ~$5 billion liquidated, down nearly 10% over five days, trading at $111,616.20
- Ether: ~$4 billion liquidated, a 14.2% decline, now priced at $3,742.88
- Solana: ~$2 billion liquidated, nearly 20% drop, trading at $178.72
CoinGlass called this event the “largest liquidation event in crypto history.”
The sell-off coincided with declines in traditional markets, with the Nasdaq and S&P 500 experiencing their steepest drops in six months, further amplifying panic in the crypto ecosystem.
How Trump’s Crypto Policies Contributed to Market Volatility
Since taking office this year, Trump has taken an unusual stance toward cryptocurrencies:
- Initially dismissed Bitcoin as “based on thin air”
- Later engaged with crypto fans at conventions
- Launched his own meme coin
- Promised a strategic crypto reserve
- Signed an executive order allowing digital assets in 401(k) plans, sending Bitcoin to a record high of $124,000 last week
These policy shifts contributed to market optimism, but the latest trade tensions with China exposed vulnerabilities in the market’s leverage.
The Role of US-China Trade Tensions
Trade negotiations between Washington and Beijing have been volatile this year. The situation worsened after:
- China imposed export restrictions on critical rare earth minerals
- The Trump administration responded with the threat of 100% tariffs on Chinese imports
This escalation caused investors to reassess their risk exposure, particularly in highly speculative markets like crypto.
What This Means for Investors
For cryptocurrency traders, the sell-off serves as a cautionary tale:
- Leverage can amplify losses – Highly leveraged positions in crypto can be wiped out in hours.
- Macro events impact crypto – Trade wars, tariffs, and regulatory news can create sudden volatility.
- Diversification is key – Avoid putting all funds into a single digital asset.
- Stay informed – Track liquidations and market data via platforms like CoinGlass.
Investors should also monitor traditional stock markets, as correlations between Nasdaq/S&P 500 and crypto are becoming increasingly evident.
Key Takeaways: Bitcoin, Ether, Solana
| Cryptocurrency | Recent Price Drop | Liquidation Value | Percentage Decline |
|---|---|---|---|
| Bitcoin (BTC) | $111,616 | $5B | ~10% |
| Ether (ETH) | $3,742 | $4B | 14.2% |
| Solana (SOL) | $178 | $2B | ~20% |
FAQs on Crypto Market Sell-Off
Q1: What caused the $18 billion crypto sell-off?
A1: The sell-off was triggered by Trump’s announcement of 100% tariffs on China, causing panic among leveraged crypto traders.
Q2: Which cryptocurrencies were affected the most?
A2: Bitcoin, Ether, and Solana faced the largest losses, with combined liquidations exceeding $11 billion in the last 24 hours.
Q3: How can investors protect themselves during such sell-offs?
A3: Limit leverage, diversify holdings, monitor market trends, and use stop-loss orders to manage risk.
Q4: Did traditional markets also fall during this time?
A4: Yes, the Nasdaq and S&P 500 saw their steepest declines in six months, amplifying crypto market volatility.
Q5: Will crypto recover after this liquidation event?
A5: Historically, cryptocurrencies rebound after large sell-offs, but ongoing macro events and trade tensions may affect the pace of recovery.
Conclusion
Trump’s new 100% tariffs on China not only reignited trade tensions but also triggered a historic $18 billion cryptocurrency sell-off, exposing the risks of leveraged positions. Investors must remain cautious, track market movements, and adopt risk management strategies to navigate this volatile environment.
Stay updated on crypto news and trade developments — your next strategic move could save millions.