The crypto market has been rattled by a new bill proposed by U.S. President Donald Trump that could impose a staggering 500% tariff on countries still trading with Russia. The proposed legislation primarily targets nations that continue to purchase Russian oil and gas, aiming to further isolate Russia economically as part of global sanctions. This bold move has sent shockwaves through global markets, particularly the volatile cryptocurrency sector.
According to Republican Senator Lindsey Graham, one of the bill’s key architects, countries that trade with Russia and fail to support Ukraine will face severe tariffs. The measure seeks to reduce Russia’s financial capabilities amid its ongoing conflict. Trump, backing these measures, warned that “very tough sanctions” were on the horizon for any nation doing business with Moscow.
Crypto Market Faces Major Setbacks
The announcement of such drastic tariff measures has added fuel to the fire in an already volatile crypto market. Bitcoin, already under pressure after dropping to $95,000, saw a fresh decline as the market reacted to the news. Within 24 hours, the market witnessed a staggering $620 million in liquidations, and over 152,000 traders were forced to exit their positions. Leading altcoins like XRP, Solana, and Cardano also faced severe price swings, with Ethereum dipping closer to the $3,000 mark.
Tariff announcements have historically caused immediate disruption in the crypto market, with major losses seen during past trade conflicts, such as Trump’s tariffs on China. Analysts now fear that the 500% tariff could trigger even greater panic selling, with predictions of a potential 10-20% drop in Bitcoin and other major digital assets.
Increased Market Volatility and Uncertainty
Global cryptocurrency prices shifted sharply within the last 24 hours, with the total crypto market cap falling to $3.32 trillion after a 0.74% decline. This contraction triggered losses across leading assets. Bitcoin dropped 0.6% to $95,184.53, while Ethereum slipped 0.2% to $3,190.85. The decline reflected steady profit-taking, as cautious sentiment and increased market volatility led to heightened selling pressure throughout the session.