Trump Tariffs Spark Global Crypto Meltdown

The cryptocurrency market was rocked Monday as Bitcoin plunged below $75,000, leading a broad-based sell-off across digital assets. But by 2 p.m. ET, BTC had bounced back to $78,000, as dip-buyers stepped in and traders awaited updates on global trade negotiations.

The rebound came after nearly $1 billion in liquidations and widespread losses earlier in the day, spurred by mounting macroeconomic uncertainty and aggressive new tariffs imposed by President Donald Trump on key trading partners.

Crypto Carnage: What Happened

• Bitcoin (BTC) fell below $75,000 before recovering to $78,000 by mid-afternoon.
• XRP and Solana (SOL) both plunged over 20% in 24 hours, breaching major support levels.
• Dogecoin (DOGE) sank 20% to $0.13.
• The CoinDesk 20 (CD20) index dropped 12%, signaling a sweeping risk-off sentiment.
• Market losses erased tens of billions in crypto market cap before stabilizing.

What Caused the Bitcoin Sell-Off?

The sharp downturn was attributed to a combination of:

• New Trump tariffs: 25% on Canadian and Mexican imports, 20% on Chinese goods.
• Retaliation risks: China is reportedly considering early stimulus measures.
• Global economic fears: Investors are pulling out of risk assets amid rising uncertainty.
• Liquidation cascade: Nearly $1 billion in leveraged positions were force-closed across exchanges.

“This morning’s Asia market declines and crypto’s weekend lead on equities have only reinforced the risk-off mood,” said Jeff Mei, COO at BTSE.

Technical Trouble for Altcoins

• XRP tumbled below its 200-day moving average, now trading around $1.70.
• SOL dropped under $100, breaking its 50-day moving average and sitting 64% off its peak.
• DOGE, a favorite among meme coin traders, was hammered back to $0.13.

“This market is showing clear bear market behavior,” said Augustine Fan of SignalPlus. “Until macro conditions stabilize, we’ll keep seeing rallies sold and investor sentiment shaken.”

The Bigger Picture: Global Trade Tensions

President Trump’s tariff escalation has set off a ripple effect globally. In response:

• Vietnam, Cambodia, and Taiwan have pledged lower tariffs and more U.S. investment.
• Analysts warn that meaningful relief will only come if China or Japan strike temporary deals or secure exemptions.

“We’re not likely to see a true rebound until a major player steps in to de-escalate,” Mei noted.

Will Crypto Continue to Recover?

Despite Bitcoin’s afternoon recovery to $78,000, experts warn that volatility is far from over.

• Gold and the Japanese yen are gaining traction as safer bets.
• Markets remain on edge heading into the U.S. equities open and upcoming trade talks.
• Long-term trends still favor Bitcoin’s resilience, but short-term risk management is dominating strategies.

“Unless global markets stop melting down, crypto will stay under pressure,” said Fan.

Key Takeaways for Crypto Investors

• Expect continued volatility tied to U.S. trade policy and global economic shifts.
• Watch for potential market-moving announcements from China, Japan, or the White House.
• Bitcoin’s bounce to $78K offers temporary relief but doesn’t yet signal full recovery.

Stay tuned for more updates as geopolitical headlines continue to shake the crypto landscape.

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