Bitcoin has fallen to a low of $74,637, after U.S. President Donald Trump announced a series of new import tariffs.
This price drop comes as part of a broader market sell-off, with over $246 billion wiped from the total value of crypto assets in a matter of hours. The sharp decline reflects growing fears among investors over rising trade tensions and economic instability.
Tariffs Lead to Global Market Turmoil
Trump’s announcement included a 10% baseline tariff on all imports, along with higher rates targeting specific countries. These include a 34% tariff on Chinese goods and a 20% tariff on products from the European Union. The news quickly impacted financial markets worldwide, especially risk assets like cryptocurrencies.
Bitcoin, which has often been seen as a hedge against traditional market risks, lost over 10% of its value in 24 hours. This brings its price back near levels seen before Trump’s election victory, reversing most of the gains made since November.
Mass Liquidations Across Crypto
The downturn didn’t stop with Bitcoin. Over $1.41 million worth of crypto positions were liquidated in a single day, as traders scrambled to exit their positions. Ethereum (ETH) also saw a steep fall, dropping to $1,446, representing an 18.5% decline over the past week.
The panic-driven sell-off highlights the vulnerability of crypto markets to global political and economic shifts, especially during times of uncertainty.
Volatility Remains a Key RiskBitcoin had previously reached an all-time high of $108,000, but this recent crash shows just how quickly momentum can change. While some investors continue to view crypto as a long-term store of value, these sharp price swings underline the high-risk nature of the asset class.
As geopolitical tensions rise and economic policies shift, cryptocurrencies may continue to face unstable conditions, especially when global news triggers fast market reactions.