Bitcoin recovered its position by the morning, but fell below psychological levels again.
Coinglass reports that the volume of liquidation in the cryptocurrency market over the last 24 hours was $540,000,000, with $482,000,000 being attributed to the long position. A large portion of the forcibly-closed positions are low-cap altcoins in the category “other”.
Also, the largest digital assets showed a decline. Ethereum dropped below $3100 and decreased by 6.6% on the day.
SOL and DOGE were the worst hit (- 17.5%) ADA fell 9.8% to $0.88.
U.S. tariffs and responses from other countries
A statement released by the White House stated that “Trump will impose a 25% tariff increase on all imports coming from Canada, Mexico, and China and 10% on those from China.”
The statement read: “[The president] takes bold actions to force Mexico, Canada and China to keep their promises and stop the illegal immigration of drugs and toxic fentanyl into the United States.”
Justin Trudeau, the Canadian prime minister announced during a recent press conference that he plans to apply a 25 percent tariff to certain American products in response to these new tariffs.
CNN reports that the Ministry of Commerce of China has prepared to lodge a complaint at the World Trade Organization, and to “take countermeasures appropriate.”
In a long post published on X, the President of Mexico Claudia Sheinbaum said that she had instructed the Minister for Economy to implement “Plan B,” which included “tariffs and non-tariffs measures to protect Mexico’s interests.”
It turns out Trump is not afraid of market and economic fluctuations. “There will be temporary disruptions and the people will accept this,” were his exact words.
The S&P 500 index and the Nasdaq100 haven’t shown any significant drops. Wu believes that U.S. Tariffs are negative macroeconomically in the longer term.
Cryptocurrency: Impact
The opinions of the crypto community on Trump’s Tariffs and their impact on the industry vary. Dan Gambardello, Founder of Crypto Capital Ventures, considers that the current situation is stable.
I cannot believe that there is a common opinion circulating around the internet claiming Trump’s tariffs and memecoins have ended this bull cycle. Blackrock continues to acquire ETH and BTC, while the retail market panics because cryptocurrency is consolidating”, Gambardello said.
Jeff Park, Head of Alpha Strategies for Bitwise Invest, noted that “some still do not understand the amazing impact a trade war will have on cryptocurrencies.”
Listen, buddy. I love Bitcoin. But it isn’t like that. Bitcoin has become a triple-leveraged technology that is no longer sufficiently isolated from the global market. A contraction on this scale is bad for all, so we should be prepared to denounce it,” said Adam Cochran, partner at Cinnaeamhain Ventures.
