In a sudden market shift, 36,700 BTC worth approximately $4.1 billion was moved to exchanges at a loss following Trump's 100% tariff announcement on China.
This massive Bitcoin selloff underscores heightened market volatility, exacerbating price drops and sparking panic amid economic and geopolitical uncertainties.
In response to President Trump's imposition of a 100% tariff on China, the cryptocurrency market witnessed a sharp downturn. Bitcoin crashed below $120,000, triggering panic amongst investors. Over 36,700 BTC were sent to exchanges, amplifying the market upheaval.
President Trump's announcement catalyzed this abrupt market disruption. Bitcoin experienced a major single-day correction of 2025. Institutional analyst Joe DiPasquale cited previous ETF inflows that now face strong reversal due to these geopolitical events.
The immediate effects of Trump's tariffs include a cascading selloff, notably affecting Bitcoin and major altcoins. Significant liquidation events and price volatility ensued. Market participants are reacting to the increased risk attributed to macroeconomic shocks.
“When macro shocks hit, the first reaction is always violent de‑risking. Only after the dust settles do buyers return at new levels.” – Arthur Hayes, Co‑founder, BitMEX.
Financial consequences are stark. Liquidations led to approximately $4.1 billion outflowing from holders' wallets at a loss. This scenario marks a period of de‑risking, with significant downturns in Bitcoin futures open interest and volatile exchange activity.
The implications extend to the financial structure of the crypto market. Exchange wallets have witnessed a surge of incoming coins with unrealized losses. Panic selloffs have heightened among major cryptocurrencies, reflecting historical patterns from past economic disruptions.
As traders navigate these developments, historical trends suggest possible technological adaptations and regulatory discussions. Regulatory clarity continues with SEC support for ETF listings amid this crisis. Investor sentiment may stabilize upon recognizing new opportunities post‑liquidation.