Bitcoin plummets as chaos of Trump’s tariffs spread to crypto
Bitcoin has been caught in the carnage of President Trump’s tariff onslaught.
The token shed four per cent of its price on Monday as major stock markets across the globe sunk into the red.
The price of the coin traded around $77,000 Monday afternoon – marking a fall of around $82,000 from last week.
Bitcoin’s value has sank by almost 28 per cent since hitting a record high of around $110,000 in January following Trump’s inauguration.
The cryptocurrency market suffered a brutal crash as geopolitical tensions exploded over the last week.
It is estimated that £200bn of the cryptos market value has been wiped out by trading carnage.
Ether, the second most popular crypto token, has fallen to a one year low of around $1,500.
This comes as the White House showed zero signs of backing down from its tariff agenda, even as the global trade war kicked into a new gear.
The scale and speed of crypto’s downturn has triggered widespread liquidations across leveraged crypto positions – which refers to traders being forced to sell their assets because they no longer meet the necessary margin requirements.
Crypto data platform Coinglass estimated that $1.1bn had been erased in just 24 hours due to the liquidations.
Long traders, those who buy an asset with the expectation of long term increases, suffered the biggest blow.
Coinglass projected that Bitcoin long traders lost $280m, whilst short traders of the token lost $62m.
The crypto market had originally surged under Trump’s Presidency, following his pledges to make the US the “crypto capital of the world”.
Trump unveiled his new strategic reserve last month – in what was hailed as another boost to the crypto market.
However, the President’s doubling down on tariffs has investors anticipating further global fluctuations and has led to a sell-off that has extended from Wall Street and New York to the desks of digital asset traders.