Trade War Fears Wipe $300B from Crypto Market Cap
Cryptocurrency markets experienced a dramatic selloff in response to President Trump’s announcement of new tariffs against major trading partners, with losses far exceeding those seen in traditional financial markets.
Bitcoin plummeted from $106,000 to $95,298, briefly touching $91,231, while Ether suffered its most severe single-day decline in four years, dropping as much as 26% during Asian trading hours to $2,608.21.
The crypto market’s sharp reaction dwarfed the relatively modest declines in traditional markets, where S&P 500 futures fell 1.7% and Nasdaq-100 futures dropped 2.1%. Even as the U.S. Dollar Index climbed 1.1% to levels not seen since late 2022, the global cryptocurrency market capitalization shrank by 8.72% to $3.08 trillion.
The widespread panic selling extended to the memecoin sector, with Trump’s namesake cryptocurrency dropping 14% to $17.748, highlighting the market’s broad-based vulnerability to macroeconomic shocks.
