Crypto Bloodbath: $450M Liquidated as Bitcoin Slides on Tariff Shockwaves
The crypto market was jolted into a sharp downturn early Thursday as escalating U.S. trade tariffs triggered a wave of liquidations, wiping out $450 million in leveraged bets across digital assets.
Bitcoin (BTC), which had flirted with $87,000 in a midweek rally, abruptly plunged to $83,500 following U.S. President Donald Trump’s announcement of aggressive new tariffs. The sweeping measures include a 25% tariff on foreign-made automobiles and a staggering 50% duty on Chinese imports—sending global markets into a tailspin.
Major altcoins followed suit, with ether (ETH) slipping below $1,800 and XRP dipping to $2.12. The declines reversed gains from earlier in the week and triggered one of the most balanced liquidation events in months.
According to data from Coinglass, over $230 million in bullish and bearish positions were liquidated in under 24 hours, highlighting the market’s extreme uncertainty. Bitcoin and ether futures led the charge, while smaller altcoins added to the tally amid choppy trading conditions.
“Both sides of the trade were punished,” said a derivatives analyst. “This kind of two-sided wipeout usually reflects a market struggling to find a direction under macro pressure.”
Traders are now closely watching Beijing, with speculation swirling over a potential devaluation of the yuan—an act that could further rattle global markets and extend the crypto rout.
As gold soared to record highs and U.S. equities turned red, crypto traders were left licking their wounds, bracing for whatever comes next in a tense geopolitical standoff.
