- Trump tariffs prompted a significant sell-off in crypto and mainstream markets, and Bitcoin fell from $88,500 to a low of $82,223.
- The cryptocurrency community dubbed it “Liquidation Day” as $500 million was erased, and 181,544 traders experienced forced liquidations.
- Analysts are still positive despite short-term losses, projecting that Bitcoin can hit between $200,000 and $500,000 in the future.
Trump tariffs caused major problems in the crypto network. The plan to add high taxes on imports made investors nervous, leading to a big sell-off in both regular and crypto markets. Bitcoin, Ethereum, Solana, and other cryptocurrencies dropped as traders hurried to close their positions.
Bitcoin, which previously hit $88,500, dropped suddenly to $83,400 in a matter of minutes, with some reports even indicating it dipped as low as $82,223. The sharp fall erased as much as $500 million in liquidations, both in long and short positions.
Approximately 181,544 traders were subjected to forced liquidations because of Trump tariffs, with positions tied to Bitcoin alone losing $176 million. Ethereum and Solana also experienced significant losses, with Ethereum dropped by approximately 6% and Solana declining by 6.6%.
The market capitalization of crypto assets decreased by more than 5%, going down to $2.64 trillion.
Crypto Community Calls It ‘Liquidation Day’
Trump tariffs as a move to correct the trade imbalance, but the crypto community responded by labeling it as “Liquidation Day” rather than the “Liberation Day” Trump had declared.
Trump tariffs feature a 10% tariff on all imports and a 25% tariff on foreign automobiles. Some countries, such as China, will be subject to tariffs of up to 54%.
These protectionist policies put uncertainty into the market, driving investors towards safe havens like gold, which increased from $3,134 to $3,152 per ounce. The stock market also took a hit, with the Dow Jones declining 918 points and the S&P 500 down 3.7%, for a total loss of $2 trillion in market value.
Long-Term Bitcoin Forecasts Remain Positive
In spite of the massive selling, most professionals consider this to be a temporary correction and that long-term prospects of Bitcoin are sound. There are analysts who see Bitcoin reaching between $200,000 and $500,000, particularly if the US is considering having Bitcoin in its reserves.
In the meantime, the market is still uncertain with Bitcoin settling down at $83,500. While short-term movements may continue to be volatile, Bitcoin has gone through many similar situations in the past and has always managed to recover.
Also Read: Trump’s April 2 Tariffs: A Game Changer for Bitcoin or Another Setback?
