The cryptocurrency market is facing a significant downturn after President Donald Trump’s newly imposed tariffs on Chinese goods came into effect at midnight on Tuesday.
Ethereum led the way with an 8.3% drop, while Bitcoin saw a more moderate decline of 4.1%, falling to $76,550—its lowest point since March 2023.
The market-wide selloff mirrored global financial trends, with Ethereum experiencing the steepest losses among the top tokens.
Other major cryptocurrencies followed suit, with Dogecoin shedding 16.3%, Solana dipping 18%, and Cardano plunging 23.7% over the past week.
Bitcoin’s price even dipped below $75,000 late Tuesday, marking a 30% drop from its January peak of over $109,000.
The total liquidations in the crypto market over the past 24 hours exceeded $411 million, according to CoinGlass, as investors scrambled to cut losses amid the volatility.
“It’s been a miserable run since February,” said Pav Hundal, a market analyst at Swyftx, referring to the overall $1.2 trillion loss in crypto market value. “Investors are operating at emotional extremes, trying to navigate an uncertain and unpredictable market.”
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The negative sentiment from the crypto space also spilled over into traditional markets, with U.S. stock futures plummeting as Trump’s sweeping tariffs on 185 countries triggered a global “risk-off” approach.
The S&P 500 lost over $2 trillion in market capitalization in a matter of minutes, and Asian markets opened sharply lower on Wednesday.
Adding to investor anxieties, rising bond yields and tepid demand for U.S. debt are heightening concerns over prolonged market instability.
Analysts warn that the ongoing trade tensions between the U.S. and China, combined with the new tariffs, could lead to even greater uncertainty for both crypto and traditional financial markets in the coming months.