The cryptocurrency market experienced a sharp downturn following former U.S. President Donald Trump’s announcement of proposed new tariffs, sparking widespread market anxiety and triggering massive long liquidations across exchanges.
Major cryptocurrencies registered declines amid the sell-off, with Bitcoin briefly touching $113,988.47 before paring losses. Ethereum, XRP, and BNB saw milder decreases compared to Bitcoin’s initial plunge.
Crypto-related equities bore the brunt of the market reaction, significantly underperforming digital assets. Notable declines included Coinbase (down 15%), Circle (down 4%), Galaxy Digital (down 2%), Bitmine Immersion (down 8%), and MicroStrategy (down 5%).
The downturn accelerated as leveraged long positions underwent forced liquidation, compelling traders to sell holdings to cover margin obligations. This cascade exacerbated downward momentum throughout trading sessions.
Bitcoin demonstrated notable resilience compared to both altcoins and equities, stabilizing rapidly after its initial drop. This price action reinforced Bitcoin’s standing as a relative benchmark of stability within the volatile cryptocurrency ecosystem during macroeconomic shocks.