Trump Tariff Announcement Triggers $509 Million Crypto Market Plunge

The crypto market took a significant hit after U.S. President Donald Trump unveiled a sweeping set of reciprocal tariffs targeting many countries around the world. The announcement, delivered during a White House press conference labeled “Liberation Day,” sent waves through global financial systems, with the crypto sector bearing a particularly heavy burden.

Within several hours after the press conference, roughly $509 million in leveraged positions were wiped out, as major digital assets like Bitcoin, Ethereum, and Solana saw sharp declines. The news rattled investors, pushing the total crypto market cap down by 4% to below $2.7 trillion, a stark reminder of how quickly sentiment can shift in this volatile space.

Bitcoin, the leading crypto by market value, slipped below the $82,500 mark. Ethereum followed suit, dipping under $1,800, while Solana, a favorite among developers and speculators, also faced steep losses. Trading volumes spiked as the sell-off gained momentum, with Bitcoin alone accounting for more than $225 million in liquidations. Beyond crypto, traditional markets felt the pressure too, with Dow futures sliding and gold prices nudging higher as some sought refuge in safer assets.

Economic Uncertainty Fuels Market Reaction

The root of this turmoil lies in Trump’s reciprocal tariff plan, which promises to reshape trade dynamics with some of America’s closest partners and biggest rivals. By targeting many countries, the policy has sparked concerns about retaliatory measures, rising inflation, and broader economic fallout.

For the crypto market, already sensitive to macroeconomic shifts, the timing couldn’t have been worse. Analysts suggest that the sudden drop reflects not just panic selling but also a recalibration of expectations as investors weigh the potential for higher costs and slower global growth. Unlike traditional equities, cryptocurrencies often amplify reactions to such news, given their speculative nature and round-the-clock trading.