Crypto Liquidations Cross 500 Billion After Trump Tariff Shock

Crypto markets are under pressure again as traders react to fresh economic tension triggered by new U.S. tariffs introduced by former President Donald Trump. The sweeping policy shift, which includes new import duties across the board, has caused both traditional and digital assets to fall sharply.

Bitcoin, which briefly touched $87,790 in the last 24 hours, has dropped to around $83,400, according to CoinMarketCap. The broader crypto market has also taken a hit, with liquidations crossing $518 billion in the past day. The sudden price drop follows a sharp sell-off as investors digest the ripple effects of Trump’s aggressive trade stance.

The reciprocal tariffs are designed to address decades of unfair trade practices and restore economic fairness for the United States.

U.S. stock futures also fell sharply. The Dow Jones Industrial Average dropped more than 1,000 points in after-hours trading. S&P 500 futures fell by 3.5% and Nasdaq 100 futures slipped 4.2%. The shock extended beyond equities, spilling over into cryptocurrencies that have been increasingly tied to macroeconomic sentiment.

Trump’s latest move involves a 10% tariff on all imported goods entering the U.S., starting April 5. The stated goal is to boost domestic manufacturing and reduce reliance on foreign imports. In addition, starting April 9, tariffs of up to 54% will apply to a range of goods from specific countries, with China facing the steepest rates. These are part of what Trump called “reciprocal tariffs.”

Speaking from the Rose Garden, Trump said, “The reciprocal tariffs are designed to address decades of unfair trade practices and restore economic fairness for the United States.”

The blanket nature of the tariffs and the high rates against some countries surprised many analysts, who had expected more targeted measures. Traders in both traditional and crypto markets are now bracing for further volatility, especially if other countries respond with retaliatory policies.

Bitcoin, often seen as a hedge during economic uncertainty, has not been immune to the broader market sell-off. Instead of benefiting from the chaos, it’s tracking alongside major indexes, suggesting risk-off sentiment is dominating investor behavior.

For now, global markets are adjusting to a fast-changing trade landscape, and crypto holders are watching closely to see how regulators and central banks respond in the days ahead.