The cryptocurrency market has entered a sharp downward trend since the beginning of the month. This wave began with Bitcoin 
$111,391 losing approximately 10% of its value, leading to even larger losses in other altcoins such as Ethereum 
$2,678, XRP, and Dogecoin 
$0.247527. The announcement of tariff increases by U.S. President Donald Trump on Canada, China, and Mexico created an atmosphere of panic in the markets. As a result of the recent decline, over 720,000 investors have incurred losses, and it has been reported that $2.22 billion in positions have been liquidated. Experts warn that short-term uncertainty is likely to persist.
Impact of Tariff Announcements on the Market
Donald Trump’s tariff increase announcements triggered a swift risk-off approach in global markets. Investors, particularly in high-risk assets like cryptocurrencies, have been moving towards traditional safe havens such as gold and bonds. Analysts from 10X Research emphasize that the market has not fully priced in these geopolitical maneuvers.
Ethereum and Bitcoin, among other major cryptocurrencies, saw significant declines that severely impacted long position holders. Ethereum’s value has dropped by more than 10%, while Bitcoin’s price fell below the $60,000 mark. Market participants are concerned about the timing of the tariffs that Trump indicated would be implemented “soon.”
International Reactions to Tariff Plans and Consequences
Canada, China, and Mexico have announced plans to respond to Trump’s tariff initiatives. The Chinese Ministry of Commerce has signaled a “proportional response,” while the European Union is also preparing similar measures. These developments have reignited fears of a global trade war.
The cryptocurrency market has once again shown a tendency to react quickly to international tensions. Analysts suggest that investors may diversify their portfolios, yet they believe cryptocurrencies will maintain their long-term potential. Furthermore, the impacts of the $2.22 billion liquidation are expected to become clearer in the coming days.
