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Crypto market loses $125 billion amid Trump’s tariff threats
Prices of major cryptocurrencies fell across the board after U.S. President Donald Trump on Friday threatened to impose “massive tariff increases” on Chinese goods imported into the United States.
Bitcoin, the largest cryptocurrency by market capitalization, dropped about 2% at the time of publication.
Other top 10 digital assets also declined — ETH fell by 4.4%, SOL by more than 3%, and XRP by nearly 2%.
The total cryptocurrency market capitalization shrank by over $125 billion, losing almost 3% in just two hours.
According to CoinGlass, this decline triggered liquidations worth more than $820 million, though the published data may underestimate the true scale of activity due to API limitations and incomplete reporting.
Crypto-related stocks performed even worse: the three largest by market cap — Robinhood (HOOD), Mercado Libre (MELI), and Coinbase (COIN) — all fell by more than 5%.
Meanwhile, Bullish (BLSH) and Circle (CRCL), both of which went public earlier this year, were the worst performers, down over 7% at press time.
In contrast, BNB, the native token of BNB Chain supported by Binance, reversed course and gained slightly over the last hour, according to The Block.
This week, BNB climbed to third place among freely circulating cryptocurrencies by market capitalization, surpassing SOL and XRP.
Cryptocurrencies weren’t the only assets shaken by Trump’s aggressive tariff stance.
Stock indices, including the Dow Jones, fell by 540 points after a Truth Social post in which Trump claimed that China was “holding the world hostage” with its revised policy on rare earth metals.
On Thursday, China’s Ministry of Commerce announced that foreign companies will need to obtain licenses to export products containing more than 0.1% of rare earth metals sourced from China and meet additional regulatory conditions.
However, some privacy-focused crypto assets appeared to benefit from market turbulence.
Zcash, Horizon, and Dash — known for their anonymity features — rose by double digits, driven by “meta-dynamics” across emerging markets.
See also: "Bitcoin drops 13% amid bearish trading and pullback"
