Trump Tariffs Trigger $500M Crypto Liquidations: Bitcoin, Ethereum Hit Hard

The cryptocurrency market has just been through a wild 24 hours, with prices swinging sharply and traders facing massive losses. Bitcoin, the biggest player in the space, tumbled from $88,500 to $83,400 in a sudden drop that caught many off guard. The reason? A surprise announcement from President Donald Trump about new tariffs, sparking uncertainty across global markets – including crypto.

But that was just the beginning.

So, what exactly happened, and what does it mean for the future of crypto? Let’s break it down.

Massive Liquidations Wipe Out $500 Million

The sudden price swings led to widespread liquidations, totaling nearly $500 million. According to Coinglass, $300 million was wiped out in just four hours. At first, short positions were hit, followed by a wave of long position liquidations. In just one hour, over $100 million in long positions vanished.

In total, 159,333 traders saw their positions liquidated, with the biggest single liquidation—a $11.97 million ETHUSDT order—taking place on Binance. Of the total liquidations, $257 million came from long positions and $232 million from short positions.

The impact wasn’t limited to Bitcoin. Major cryptocurrencies like Ethereum, Solana, XRP, and Cardano also suffered losses. As a result, the total market capitalization shrank by $200 billion from its recent high during after-hours trading.

Trump’s ‘Liberation Day’ or ‘Liquidation Day’?

Macroeconomic uncertainty played a key role in this market downturn, with traders reacting to Trump’s latest tariff policy. In his ‘Liberation Day’ speech, he announced aggressive new tariffs on key trade partners, calling it a necessary move to fix U.S. trade imbalances. However, the crypto community on X was quick to dub it ‘Liquidation Day’ as the market crashed.

Bitcoin has been on a rollercoaster, fluctuating between $73,000 and $88,000. As of now, it sits around $83,500, down 0.9% in the past day.

What’s Next? Bitcoin’s Long-Term Prospects

Despite the current market chaos, analysts remain optimistic about Bitcoin’s future. Some predict it could surpass $200,000 by the end of 2025, with more ambitious forecasts suggesting it could reach $500,000 – especially if the U.S. establishes a strategic Bitcoin reserve.

While short-term uncertainty remains, one thing is clear: Trump’s economic policies will continue to shape the crypto market in the months ahead.

Markets may panic, charts may bleed, but Bitcoin has seen worse – and always has a way of surprising everyone. So, stay strong, investors!