The crypto market has experienced one of its sharpest declines: due to Donald Trump’s announcement of 100% tariffs on Chinese imports and export restrictions, bitcoin fell by 8,4% to $104,782. According to Reuters, this drop was the catalyst for mass liquidations of leveraged positions in the crypto space.
The crypto market has experienced one of its sharpest declines: due to Donald Trump’s announcement of 100% tariffs on Chinese imports and export restrictions, bitcoin fell by 8,4% to $104,782. According to Reuters, this drop was the catalyst for mass liquidations of leveraged positions in the crypto space.
Following Trump’s tariff announcement, risk asset markets were shocked, with the BTC/USDT futures pair on Binance falling to ~$102,000, and tens of billions of dollars in margin positions being liquidated on exchanges.
According to CryptoBriefing, over $19 billion in positions were liquidated in just 24 hours — a record for the crypto market.
Long positions were hit the hardest — traders with leverage suffered huge losses.
Among the key reasons for the decline are the following:
Escalation of the trade war between the US and China
Trump announced tough tariff measures in response to Chinese plans to restrict exports of rare earth materials, which are key to the microchip and high-tech industries.
Mass liquidation of leveraged positions
When the price falls rapidly, automatic liquidations (stop-loss, margin calls) are triggered one after another, accelerating the collapse.
Increased correlation with traditional markets
Risk conditions are forcing investors to exit assets with high volatility, including cryptocurrencies.
Bitcoin’s fall to $104 from this level puts pressure on the $100,000 support — if it is broken, the decline could accelerate even further.
For traders and investors, this is a reminder: the cryptocurrency market is not only about potential profits, but also high risks due to volatility and geopolitical factors.
Leveraged assets are especially dangerous for local players, who are most likely to suffer losses.
Analysts note that Bitcoin price movements are now highly correlated with Trump’s tariff policy: growth when there is talk of stimulus measures or payments (for example, «tariff dividend» checks), and decline when trade conflicts escalate.
Recall that the record Bitcoin rate (all-time high) was $126,210.50 USD.
