Trump’s Tariffs Trigger $10 Billion Crypto Liquidation
The cryptocurrency market is currently suffering a massive loss and is estimated to have liquidated between $8 billion and $10 billion. This comes as global financial markets reel from new U.S. tariffs imposed on China, Canada, and Mexico.
On Sunday, the President Donald Trump announced steep tariffs on imported goods from these countries. The tariffs include a 25% tax on all goods from Mexico and Canada, with a partial carve-out for Canadian energy and oil exports. Additionally, a 10% tariff has been imposed on goods from China.
Also Read: What You Should Know About the US Trade War With Mexico, Canada, and China
The crypto industry reacted negatively to the news, as the industry, which soared after the November 5 Presidential election, witnessed a massive sell-off.
Bitcoin, the flagship in the industry, which was traded above $106,000 on Saturday, has lost over $11,000 as of 2:20 pm WAT today. Within that timeframe, Ethereum fell from $3,162 to $2,090 but now trades at $2,575.
Many other coins examined by Neusroom suffered even a steeper dip. $Trump, the meme coin launched 48 hours before Trump’s inauguration, has shed 17 percent in the last 24 hours. Similarly, the associated meme coin, $Melania, launched by his wife, dipped by over 15 percent. DOGE, a coin which Elon Musk, head of a newly created department, promoted, fell by 15 percent.
Ben Zhou, co-founder of Bybit, a major crypto exchange, revealed that Bybit alone recorded $2.1 billion in liquidations within 24 hours, refuting reports that the industry has lost only $2 billion in the past day.
“I am afraid that today’s real total liquidation is a lot more than $2 billion; by my estimation, it should be at least around $8–10 billion,” he said.
While data from Coinglass, which listed Bybit’s 24-hour liquidations at $333 million, Zhou said it does not reflect the full scale of the losses. He explained that API limitations restrict how much liquidation data is publicly available, and other exchanges may follow similar practices.
The broader financial markets also faced turbulence. The pan-European STOXX 600 index dropped 1.3% in morning trading, marking its biggest single-day loss this year. Futures for Wall Street’s S&P 500 indicated a 1.4% decline at the market open. Global stock markets and currencies took a hit as investors feared an escalating trade war.
The President Trump defended the decision, stating that while Americans might experience short-term pain, the tariffs were necessary to stop other nations from “ripping off” the United States.
With U.S. markets set to open soon, further volatility is expected across both traditional finance and crypto, leaving investors bracing for more potential losses.
