Cryptocurrency markets witnessed a dramatic collapse on Friday as U.S. President Donald Trump announced a massive 130% tariff on Chinese imports, reigniting fears of a renewed trade war between the world’s two largest economies. The announcement triggered a broad sell-off across digital assets and equities, wiping out over $10 billion from the crypto market within 24 hours.
According to data from Coinglass cited by Bloomberg, the sell-off marked the largest liquidation since April, with more than $7 billion worth of crypto positions erased within just one hour.
Bitcoin and Ethereum Lead the Decline
Following Trump’s tariff announcement and new export controls on critical software technologies, Bitcoin plunged 8.4% to $104,782 by 17:20 ET, while Ethereum dropped 5.8% to $3,637. Smaller altcoins like XRP and Dogecoin were hit even harder, losing over 30% in value.
Just days earlier, Bitcoin had reached an all-time high of $126,250, fueling optimism among investors before the sudden reversal.
Market Panic Spreads Beyond Crypto
The trade escalation rippled through traditional markets as well. The S&P 500 index fell over 2%, oil prices slid, and investors sought refuge in U.S. Treasury bonds and gold.
“Renewed trade tensions between China and the U.S. sparked a rout in risk assets,” said Ravi Doshi, co-head of markets at FalconX. “We saw a sharp rise in demand for downside protection across derivatives.”
Geopolitical Tensions Behind the Move
Trump’s latest trade measures were a response to Beijing’s export restrictions on rare earth minerals, critical components in global technology and manufacturing supply chains. The U.S. President also hinted that his upcoming meeting with Chinese President Xi Jinping at the APEC Summit in South Korea could be canceled, citing “hostile” Chinese trade behavior.
Investor Sentiment Turns Cautious
Until Friday, markets had been buoyed by strong liquidity inflows and renewed investor optimism. However, the sudden escalation of trade hostilities shattered that confidence, triggering what analysts are calling a “mini Black Friday” for cryptocurrencies.
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
