The crypto market is on high alert after President Donald Trump has thrown a new bill that allows the U.S. to impose up to 500% tariffs on any country still trading with Russia, especially those buying Russian energy like oil and gas.
With past tariff shocks wiping billions from crypto overnight, traders now fear an even deeper correction
The legislation gives Trump sweeping powers to impose heavy tariffs on countries that are still buying goods or energy from Russia. The proposed 500% tariff is intended to reduce the funds flowing into Russia’s war efforts.
Republican Senator Lindsey Graham, a chief architect of the measure, said plainly, “If you buy from Russia and don’t support Ukraine, your goods will face a 500 percent tariff.”
Trump himself said Republicans are preparing “very tough sanctions” for any country doing business with Moscow.
These tariffs build on previous actions, such as the recent doubling of duties on India’s exports (now 50%), with signals of even stricter measures ahead.
The latest tariff announcement has triggered fresh volatility in the crypto market. Prices were already under pressure after Bitcoin crashed to $94,000, and Trump’s shocking 500% tariff proposal added another wave of panic.
In the last 24 hours alone, nearly $620 million in positions were liquidated, forcing more than 152,000 traders to exit the market. The biggest hit came from a single BTC-USD order on Hyperliquid worth $30.6 million.
Major altcoins, including XRP, Solana, and Cardano, have been caught in sharp price swings, with Ethereum once again sliding toward the $3,000 level.
Whenever major trade shocks hit, the crypto market reacts almost instantly. We’ve seen this before, when Trump announced big tariffs on China, the crypto market wiped out $200 billion in just a few days, and Bitcoin fell nearly 10% in a day.
Now, with Trump supporting a massive 500% tariff on countries trading with Russia, analysts warn that volatility could be even worse. The much higher tariff could trigger larger panic selling if implemented.
Given the 5x increase over past rates, short-term impacts could see Bitcoin and major altcoins decline by 10-20%.
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