The recent imposition of tariffs by President Donald Trump on imports from China, Mexico, and Canada has sent shockwaves through the cryptocurrency market, leading to a significant sell-off. The tariffs, which include a 25% duty on Canadian and Mexican imports and a 10% duty on Chinese goods, have sparked fears of increased inflation and potential delays in Federal Reserve rate cuts. This has resulted in a risk-off sentiment among investors, causing Bitcoin and other major cryptocurrencies to tumble. As the Asian markets opened, Bitcoin experienced a sharp decline, with its price dropping to as low as $91,200 before rebounding slightly.
The market turmoil has been exacerbated by a massive liquidation event, with over $2.2 billion in positions being liquidated as traders who bet on higher prices were caught off guard. This liquidation event is reportedly the worst in history, surpassing even the collapses of Terra (LUNA) and FTX. The panic selling has led to a significant drop in the overall global crypto market cap, which has decreased by nearly 12% in the past 24 hours. The heightened trading volume suggests strong selling pressure, as long-term holders capitulate and offload their assets at lower profits or even at a loss.
Bitcoin's price has fallen by 3.28% today, currently trading at $94,416.41, after reaching a high of $97,618.64 earlier in the day.