Trump's Tariffs Cause Widespread Crypto Market Liquidations and Global Financial Turmoil

The crypto market took a hit in May 2019 due to Trump's tariffs, causing widespread liquidations.

On May 5, 2019, the price of Bitcoin plummeted to $7,000, wiping out $10 billion in market value in a single day.

Investors were spooked by the sudden change in global economic conditions, leading to a massive sell-off of cryptocurrencies.

The Dow Jones Industrial Average also experienced a significant decline, falling by 600 points on May 6, 2019.

As a result, the global financial markets were thrown into turmoil, with investors scrambling to cut their losses and protect their portfolios.

The tariffs imposed by Trump had a ripple effect on the global economy, causing a chain reaction of events that ultimately led to the crypto market liquidations.

The crypto market crash was a wild ride, with over $2 billion in liquidations in just 24 hours. This was largely fueled by Trump's announcement of new tariffs, which sent shockwaves through the market.

The data shows that Coinglass recorded over $2 billion in crypto liquidations after the tariff announcement. This is a staggering amount, and it's no wonder that the market was left reeling.

Bitcoin took a hit, plummeting to $95,200, its lowest price in three weeks. Ethereum also suffered, dropping to around $2,800 and wiping out all its gains since early November.

The market saw a massive selloff, with over $460 billion being eroded from the crypto market cap in just 24 hours. This is an average loss of approximately $19.1 billion per hour.

Crypto analyst KALEO predicted that Bitcoin could drop to the mid-70s, and it's clear that the market is still feeling the effects of the tariff announcement.

Over 163,000 traders got liquidated in the last 24 hours, with around $500 million in futures being liquidated. The largest single liquidation order was $11.97 million on Binance.

The worst liquidation day in crypto history was recorded, with over $2.27 billion in liquidations. This is much worse than the FTX or Luna collapses, according to analyst Michaël van de Poppe.

Bybit co-founder Ben Zhou estimates that the real total liquidation figure was at least $8-10 billion. This is a staggering amount, and it highlights the severity of the market crash.

The market-wide liquidations and crypto crash led to a 5% drop in the total market capitalization of cryptocurrencies, falling to a low of $2.64 trillion.

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The market impact of Trump's tariffs announcement was severe. Over 5% of the total market capitalization of cryptocurrencies plunged to $2.64 trillion.

The Dow Jones futures plummeted 918 points and the S&P 500 shed 3.7%, erasing nearly $2 trillion in market value. This traditional market downturn had a ripple effect on the crypto market.

$2.27 billion in liquidations occurred, the largest on record according to CoinGlass. This is much worse than the FTX or Luna collapses.

The liquidations were so severe that Bybit co-founder and CEO Ben Zhou estimated the real figure was at least $8 billion. This is a staggering amount, considering the published liquidation tallies were already $2 billion.

Over 181,544 traders saw their positions forcibly closed, with $509 million in liquidations in the crypto derivatives markets.

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Trump's tariffs caused a sell-off in the markets, prompting investors to move towards safer assets like gold, which surged from $3,134 to $3,152 per ounce.

The catalyst for the sell-off was Trump's aggressive tariff strategy, which introduced a 10% baseline tariff on all imports and a 25% tariff on foreign-made cars.

Over 163,000 traders got liquidated in the last 24 hours, with a total of $500 million in futures getting liquidated.

The largest single liquidation order of ETH/USD valued at $11.97 million happened on Binance.

Bitcoin futures alone saw $172 million in long and short liquidations, with 63% of the liquidated bets being short bets.

The US imposed hefty reciprocal tariffs on more than 180 countries and territories, including a 25% tax on auto imports and a 10% tax on all US exporters.

Here's a breakdown of the liquidations:

The tariffs sent the crypto market tumbling, with Bitcoin nosediving 4% to $82,000, Solana crashing 7%, and Ethereum dropping 3% to $1,800.

The cumulative digital assets market cap declined by another 3% over the day to stand at $2.67 trillion.

More than $2 billion in crypto liquidations were recorded in the 24 hours after the planned new tariff was announced by the US President.

The prices of the top-tier cryptocurrencies plunged after traders found themselves in a turbulent market after the tariff announcement, with Bitcoin plummeting to $95,200.

For more insights, see: Trump Tariffs April 2 2025