Crypto Market Crashes 20% as Trump Tariffs Spark $1.36B Liquidation
2min read Billionaire investor Bill Ackman has called on the Trump administration to halt its trade policies for 90 days, warning of an impending economic collapse. This demand comes as the crypto market experiences a significant crash, with Bitcoin, Solana, and XRP plummeting over 20% within 24 hours. The market crash has resulted in over $1.36 billion in crypto liquidation, triggering a selloff as traders exit risk assets and technical breakdowns fuel bearish momentum.
The crypto market crash was sparked by President Trump's recent tariff order, which imposes a minimum 10% duty on all imports and a 25% levy on vehicles. This tariff has sent shockwaves through global equities and cryptocurrency, exposing weaknesses in over-leveraged positions and sending a bearish signal across the altcoin collapse landscape. The resulting crypto liquidation wave has left markets vulnerable, with Bitcoin longs alone losing more than $392 million. The drop in Bitcoin price was boosted by an increase in sell orders and margin calls, with the turmoil echoed in the U.S. stock futures, which fell between 5.5% and 6.2%.
Ask Aime: What impact will the tariff order and trade policy halt have on the crypto market?
Bitcoin’s drop below $75,000 signaled the start of the crypto market crash, with Solana (SOL) falling under $100 and XRP dipping below its 200-day moving average. The overall altcoin collapse has pushed market sentiment deep into fear territory, with both institutional and retail traders leaving the market. Dogecoin also plummeted to $0.13 as panic spreads. The altcoin collapse has been breaking technical supports that were holding firm just a week ago, with Bitcoin’s next key support lying near $70,000. Analysts warn that if sentiment doesn’t shift, the Bitcoin price could spiral further.
As the crypto market crash unfolds, traders are comparing the ongoing turmoil to the crypto Black Monday of past years. Investors are shifting their money to safer assets like gold and the Japanese yen out of concern that the economic crisis will last longer. The cryptocurrency industry, meanwhile, is having trouble establishing itself. According to market analysts, investor sentiment will continue to be unstable unless Trump’s tariff policies are loosened. The current macroeconomic environment, including strict financial policies, trade uncertainty, and a declining Bitcoin price, is risky. If there’s no relief, more crypto liquidation events could unfold.
A policy reversal, or even a tariff pause as suggested by Ackman, could stabilize markets and allow for a bounce. Until then, volatility is expected to dominate, especially an unprecedented altcoin collapse and a global trade outlook. This crypto market crash is becoming one of the most brutal since 2022, with many calling it another crypto Black Monday. The combo of Trump’s tariff moves and massive crypto liquidation represents a bleak outlook for digital assets in the short term. Traders and investors should prepare for increased volatility, particularly in the price of Bitcoin and the market, until there is some clarity on U.S. trade policy and the macroeconomic environment.
