Quick Summary
- Trump proposes a 50% tariff on all European Union imports starting June 1, 2025.
- Crypto market loses $100 billion in market cap within hours of the announcement.
- Bitcoin falls 3%, trading near $108,530 with a steep 32% drop in trading volume.
- Altcoins like ETH, XRP, SOL, DOGE, and ADA also decline up to 4%.
- Over $308 million in long positions liquidated, with total liquidations hitting $334 million.
- CoinMarketCap 100 Index drops 2.84%, marking a notable monthly downtrend.
Crypto Market in Panic Mode
The global crypto market took a major hit after U.S. President Donald Trump announced a 50% tariff on goods imported from the European Union, citing unfair trade practices. Within hours, the crypto space saw over $100 billion wiped from its total market cap.
Bitcoin, which recently surged past $111K, dropped 3% to trade near $108,530, with a sharp 32% drop in 24-hour trading volume. Leading altcoins including Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE) and Cardano (ADA) followed suit, tumbling as much as 4%.
Liquidations Spike Amid Panic Selling
Data from Glassnode reveals that over $308 million in long positions were liquidated as panic set in across exchanges. Total liquidations—including both long and short—surged to $334 million in just four hours, reflecting the high volatility and uncertainty in the market.
Trump’s Justification: “They’re Taking Advantage of Us”
In a post on TruthSocial, Trump defended his aggressive stance against the EU:
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump stated.
He cited issues including:
- High trade barriers
- VAT taxes
- Corporate penalties
- Unfair lawsuits
- Monetary manipulation
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States,” Trump added.
What’s Next for the Crypto Market?
With global markets on edge, crypto investors are watching closely for further fallout. Whether this downturn is a short-term reaction or the start of a longer trend remains to be seen.
But one thing’s certain: geopolitical moves now have a more direct and immediate impact on the crypto ecosystem than ever before.