Crypto markets plunge as Trump’s China tariffs spark global financial turmoil

The global cryptocurrency market has been rocked by a sharp selloff in the wake of the Trump administration’s latest escalation in its trade war with China.

President Donald Trump’s imposition of a steep 104% tariff on Chinese imports triggered widespread volatility across financial markets—and cryptocurrencies were among the hardest hit.

Bitcoin, the world’s largest cryptocurrency by market capitalization, dropped 4.1% over the past 24 hours to trade at $76,550.

The coin briefly fell below the $75,000 threshold late Tuesday, just hours before the tariffs officially took effect at midnight.

Bitcoin is now down roughly 30% from its January peak of $109,000, a high reached shortly before Trump was sworn in for his second term.

Ethereum, the second-largest cryptocurrency, saw an even steeper decline, plummeting 8.3% to $1,435.43—its lowest level since March 2023. The coin is now trading nearly 70% below its all-time high of $4,891.70, recorded in November 2021.

Major altcoins mirrored the downturn. Dogecoin lost 16.3% in a single day, while Solana fell 18% and Cardano dropped a staggering 23.7% over the past week.

According to data from CoinGlass, total liquidations in the crypto market reached $411 million in the last 24 hours alone, reflecting intense investor anxiety and leveraged positions being wiped out en masse.

The turmoil in digital assets mirrors broader instability across global financial markets. Asian markets opened sharply lower on Wednesday, with Japan’s Nikkei 225 declining 2.6% and Australia’s ASX 200 falling 2%.

In the U.S., the S&P 500 dropped 1.5% on Tuesday, extending its losses since mid-February to nearly 20%—dangerously close to entering bear market territory.

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Bond markets also showed signs of strain. The 10-year U.S. Treasury yield spiked between 4.2% and 4.4% late Tuesday, marking one of its most dramatic intraday climbs since World War II.

READ ALSO: Trump slaps 104% tariff on Chinese imports as trade war escalates

The first Treasury auction of three-year notes since Trump’s April 4 “Liberation Day” announcement saw the weakest demand since late 2023, further highlighting investor unease.

The economic unrest was set in motion by the Trump administration’s decision to dramatically increase tariffs on Chinese imports after Beijing failed to meet a Tuesday deadline to lift its retaliatory measures.

White House Press Secretary Karoline Leavitt confirmed the new 104% tariff during a press briefing, reiterating Trump’s no-nonsense approach to trade.

“The president, when America is punched, he punches back harder,” Leavitt said. “That’s why there will be 104% tariffs going into effect on China tonight at midnight.”

Trump’s aggressive tariff policy, which he unveiled during his April 4 “Liberation Day” proclamation, has drawn mixed reactions from the international community.

While some nations are seeking to renegotiate trade terms with the U.S., China has responded forcefully, imposing a 34% reciprocal tariff on American goods and vowing to “fight to the end.” Chinese officials have labeled the U.S. tariffs as “blackmail” and a violation of global trade norms.

The Trump administration has defended its strategy by accusing China of deploying non-market economic policies to secure global dominance in manufacturing; a trend officials claim has decimated key U.S. industries.

The White House has framed the tariffs as a necessary corrective to years of imbalanced trade and strategic vulnerability.

As tensions between the world’s two largest economies continue to escalate, analysts warn of prolonged uncertainty for investors—and the growing risk of a full-blown global economic slowdown.

For the cryptocurrency market, once seen as a hedge against traditional finance, the current downturn suggests that not even digital assets are immune from the ripple effects of geopolitical brinkmanship.

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