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Trump tariffs have turned Uptober into October. Crypto crashed, and the entire crypto market turned red. Bitcoin price, which was flying over $120k, slumped about 8.4%. It was trading around $104K after the fall. Ethereum, the leading altcoin, also took a 16% hit.
What triggered such a crypto market bloodbath? It was a Friday afternoon Truth Social post from the crypto community’s beloved President Trump. He threatened to impose 100% tariffs on Chinese goods. It reinvigorated the trade war, which triggered that huge crypto market crash.
It appeared things were getting better between the world’s biggest importer and exporter economies, but Trump’s social media post shocked markets.
A reputed market intelligence platform reported that it was a major short-term liquidation event in the crypto industry’s history. It blindsided traders on this Friday.
Trump Tariffs: A Noble Decision or a Not-So-Noble Disaster?
This Friday was anything but calm. The Nobel committee awarded the Nobel Peace Prize to María Corina Machado, and President Trump announced 100% tariffs on China, and Wall Street and crypto crashed.
The US President has actively lobbied for the Nobel Peace Prize. He even publicly campaigned for the award, claiming he had broken several peace agreements and halted seven wars. Israeli PM, Russia, and even Ukrainian lawmakers supported Trump, but the Nobel Committee chose the Venezuelan opposition leader.
Many may not agree with the Nobel Committee’s decision, but Trump tariffs are also not–so–noble. As per experts, this trade tension between the US and China could hinder global economic growth. It could severely affect riskier asset classes, such as equities and cryptos.
The US is already dealing with inflation, and Trump Tariffs are going to raise inflationary pressures. The US Fed is already grappling with sticky inflation and a cooling job market. Trump’s newly imposed 100% tariff on China will complicate the situation for the Fed.
Crypto Crashed, But is the Turmoil Over?
The crypto community wasn’t ready for what happened after Trump tariff announcement on Truth Social. President Trump garnered immense support from the crypto community due to his pro-crypto pivot. However, his newly imposed 100% tariff on China is anything but crypto-friendly.
The market cap of the cryptocurrency market was around $4.2 trillion before the crypto crash. It witnessed a 9% decline and fell to $3.8 trillion. This new trade war between two of the world’s top economies has reignited fears of global economic instability. That led to the selling of riskier assets, including cryptos.
Details from trusted sources suggest that the sell-off has triggered liquidation of more than $19 billion in leveraged positions. Bitcoin, Ethereum, XRP, and numerous other cryptocurrency assets have experienced significant declines over the last 24 hours.
According to CoinGlass data, this crypto crash has affected over 1.6 million traders. They lost a considerable sum of money when crypto crashed.
Quinten Francois, a well-known crypto analyst, has shared that it was the largest liquidation event in crypto history. He clearly stated that the USA-China trade war was responsible for Friday’s crypto market crash.
The performance of top crypto assets clearly indicates a temporary correction, but the turmoil is not yet over.
Some altcoins have reclaimed key support levels, but the Fear & Greed index remains in a state of fear, and the CoinMarketCap 20 Index has also declined by over 10%. The aftershocks of the Trump tariff could last much longer than many anticipate now.
