A sudden wave of selling in the cryptocurrency market led to the liquidation of positions totaling $7.44 billion in just one hour last night. This sharp decline caused a major upheaval in the digital asset ecosystem, prompting several exchanges, notably Binance, to take emergency measures. The catalyst for this event was the announcement by former U.S. President Donald Trump regarding a 100 % tariff on China.
Delays in U.S. Exchanges
Bitcoin’s (BTC) price briefly spiked to $102,000, while the overall crypto market value saw a significant drop. Binance, the exchange with the highest trading volume, acknowledged experiencing network congestion. In a statement, the company announced, “All of our services are returning to normal, and user funds are safe.”
Following issues at Binance, U.S.-based Coinbase also reported delays and reduced transaction performance. The platform assured that user funds were safe and stated they were investigating the matter. Later updates indicated that the problem was resolved and the system returned to normal.
Chain Reaction in the Market
Trump’s remarks intensified the panic atmosphere in the markets. Trump described China as “hostile” and claimed on his Truth Social account that China intended to impose “export controls” on production components to various countries. This statement accelerated investors’ exit from risky assets.
In the last 24 hours, Bitcoin lost 8 % of its value, trading above $111,000. Meanwhile, Ethereum (ETH) fell by 13 % to around $3,775. The total crypto market value slumped to $3.74 trillion.
Furthermore, Trump’s firm stance on trade policies exerted pressure not only on the crypto market but also on traditional markets. Asian markets started the week with a decline, while gold prices tested the $2,500 level again. U.S. bond yields experienced a brief increase. Analysts note that crypto investors are turning to stablecoins and gold as safe havens in this environment.
In conclusion, Trump’s new tariff decisions on China reignited global trade tensions while increasing volatility in the crypto market. Such sudden sell‑offs once again demonstrated the market’s sensitivity to foreign policy developments. Experts suggest that investors should avoid leveraged trading during such periods and focus on risk management.