Crypto Markets Rattle as U.S. Tariffs Trigger $450M in Liquidations

A wave of volatility struck crypto markets following President Trump’s sweeping tariff announcement, causing nearly $450 million in leveraged positions to be liquidated as both bulls and bears got caught off guard.

Bitcoin (BTC) initially climbed past $87,000 amid optimism that the broader economy could weather the latest trade developments. But that optimism quickly faded. Following the White House’s confirmation of a 25% tariff on auto imports and additional tariffs on exports from over 180 countries — including a hefty 50% rate on select Chinese goods — crypto markets sharply reversed course.

By Thursday morning in Asia, bitcoin had dropped to around $83,500, while ether (ETH) fell below $1,800 and XRP dipped under $2.15. The rapid reversal erased gains from earlier in the week and triggered a cascade of liquidations.

According to data from derivatives platforms, roughly $230 million in long positions were liquidated, alongside an almost equal $220 million from shorts — signaling a highly uncertain market with no clear trend direction. BTC futures led with $172 million in total liquidations, followed by ETH with $120 million, and a mix of altcoins contributing the rest.

The massive liquidations reflect a market unsure of how to price in the ripple effects of global trade disruption. Analysts say China’s next move — particularly regarding the yuan — could further influence risk assets, including cryptocurrencies.

Meanwhile, safe-haven assets surged: gold soared to a new all-time high and U.S. Treasury yields plunged to levels not seen in months.

While technical indicators earlier this week suggested upward momentum, the sudden sell-off has reset market sentiment — and until global macro clarity returns, crypto traders may continue to navigate choppy waters.