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%.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Tomorrow’s Federal Open Market Committee (FOMC) decision has emerged as a critical turning point for…
Cardano’s price has drawn fresh attention after staging a strong rebound from recent lows below…
Ozak AI is becoming one of the most influential early-stage tokens in the crypto market,…
After their remarkable performances in Q4 2024, many analysts and investors were expecting XRP and…
New reports from mainland China show that regulators are increasing scrutiny of virtual currencies, with…
In early January 2025, Polygon Labs announced a partnership with Reliance Jio, India’s largest telecom…
