Crypto Market Crash Wipes Out $500B Amid U.S.-China Trade War Tensions

The ongoing trade war between the U.S. and China is once again shaking global markets, and cryptocurrencies are feeling the pressure. As both nations hit each other with fresh tariffs, investors are pulling back from riskier assets, triggering a sharp sell-off in Bitcoin, Ethereum, Cardano, and Solana.

In just 24 hours, the crypto market has lost a staggering $500 billion in value—and the turbulence might not be over yet.

How much more pain is ahead for crypto?

China Strikes Back with New Tariffs

On Tuesday, China responded to President Donald Trump’s latest tariff hike by placing a 15% duty on U.S. wheat, corn, cotton, and chicken imports. A 10% tax was also added to key agricultural products like soybeans, pork, seafood, and vegetables, set to take effect on March 10.

Billionaire investor Warren Buffett criticized Trump’s trade policies, calling the tariffs an “act of war.” He warned that these measures would ultimately hurt investors, making it harder for them to stay in the market long-term.

Trump’s latest tariff increase comes just a day after he doubled duties on Chinese imports to 20%. He also confirmed that tariffs on Mexican and Canadian goods would rise to 25%, adding more strain to global trade and increasing pressure on riskier assets like stocks and cryptocurrencies.

Crypto Market in Sharp Decline

The crypto market reacted negatively to the growing trade tensions, wiping out recent gains:

• Bitcoin (BTC) fell 2%, trading around $84,200.
• Ethereum (ETH) dropped 12%, hovering just above $2,000, its lowest level since 2023.
• Cardano (ADA), Solana (SOL), and XRP all tumbled over 20%.

This downturn follows a recent rally in the crypto market after Trump announced plans for a U.S. crypto strategic reserve. The news initially drove token prices up by nearly 60%, but the rally quickly faded as investors took profits and broader economic concerns took hold.

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White House Crypto Summit: What’s Next?

With uncertainty rising, investors are now watching Friday’s White House Crypto Summit, hoping for clearer regulations or supportive measures. The outcome could determine whether the market stabilizes or faces further turbulence.

For now, the ongoing trade war is adding to market stress, leaving crypto investors on edge as they navigate growing economic uncertainty.

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