The cryptocurrency market has experienced a sharp selloff following the implementation of U.S. President Donald Trump’s tariffs on Chinese goods.
Bitcoin dropped 4.1% to $76,550, while Ethereum saw an even steeper decline of 8.3% over the past 24 hours, marking its lowest trading point since March 2023.
Bitcoin briefly fell below the $75,000 mark late Tuesday, just hours before the tariffs took effect.
The cryptocurrency is now down approximately 30% from its January peak of $109,000, reached shortly before Trump’s inauguration.
Ethereum, the second-largest cryptocurrency by market capitalization, has fared worse, trading at $1,435.43—a staggering 70% below its all-time high of $4,891.70 set in November 2021.
Market impact and broader financial turmoil
Major altcoins have also suffered significant losses. Dogecoin dropped 16.3% on the day, while Solana and Cardano fell 18% and 23.7% over the past week, respectively.
- Liquidation data from CoinGlass reveals widespread distress, with total liquidations reaching $411 million in the last 24 hours.
- The crypto market’s downturn mirrors broader financial market instability. Asian markets opened sharply lower on Wednesday, with Japan’s Nikkei 225 falling 2.6% and Australia’s ASX 200 losing 2%.
- Meanwhile, the S&P 500 declined 1.5% on Tuesday, bringing its losses since mid-February to nearly 20%, edging closer to bear market territory.
The market disturbance coincides with key movements in bond and yield markets as the 10-year Treasury yield jumped between 4.2% and 4.4% late Tuesday, representing one of its fastest intraday climbs since World War II.
Also, on Tuesday, the first Treasury auction of three-year notes following Trump’s Liberation Day witnessed the weakest demand since late 2023.
What you should know
The Trump administration intensified its trade war with China, imposing an additional 104% tariff on Chinese imports after Beijing failed to meet a Tuesday deadline to lift its retaliatory tariffs.
- Press Secretary Karoline Leavitt confirmed the new tariffs during a briefing, stating they would take effect on April 9. Leavitt reiterated Trump’s belief that China is eager to negotiate, remarking, “The president, when America is punched, he punches back harder.”
- Trump declared April 4 as “Liberation Day” while unveiling a list of tariffs, prompting mixed reactions globally. While some nations sought to negotiate better trade terms, China responded with a 34% reciprocal tariff on U.S. imports, vowing to “fight to the end” and accusing the U.S. of “blackmail.“
The administration has justified its aggressive trade measures by accusing China of employing non-market policies that grant it “global dominance in key manufacturing industries” and “decimating U.S. industry.”
