New Trump tariffs stoke inflation fears, trigger $2 billion in crypto liquidations, Bitcoin crashes to $92K
The post New Trump tariffs stoke inflation fears, trigger $2 billion in crypto liquidations, Bitcoin crashes to $92K appeared on BitcoinEthereumNews.com.
Key Takeaways Crypto crash wiped out $2 billion in leverage liquidations in the last 24 hours. Despite the recent decline, analysts suggest that a weaker dollar and lower US rates could create favorable conditions for Bitcoin adoption. Crypto market liquidations surged to $2 billion as Bitcoin dropped to its lowest level since early January, following President Trump’s announcement of new tariffs that sparked inflation concerns, according to Coinglass data. Trump on Saturday announced plans to impose a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. The measures, targeting America’s three largest trading partners, will take effect on Tuesday. The President framed the tariffs as part of a broader strategy to address border security and combat the opioid crisis, particularly fentanyl trafficking. Economists warn Trump’s new tariffs could increase consumer costs as businesses pass on additional expenses. While the White House maintains these measures will strengthen American manufacturing, experts caution they could worsen inflation and potentially trigger a trade conflict affecting all nations involved, leading to job losses and supply chain disruptions. The announcement of these tariffs has triggered volatility in the crypto market as investors reacted to fears of mounting inflationary pressures. Bitcoin fell below $100,000 on Saturday and continued its decline to $92,000, while Ethereum dropped 24% to $2,300, according to CoinGecko data. The market turbulence led to $1.7 billion in long position liquidations over 24 hours, with Ethereum traders experiencing $528 million in losses and Bitcoin traders facing $421 million in liquidations, Coinglass data shows. The overall crypto market capitalization shrank by approximately 8%, with most crypto assets recording double-digit losses within a day. XRP and DOGE fell 30%, ADA declined 35%, while SOL and BNB each dropped 15%. Trump’s tariffs will send Bitcoin prices higher, faster Analysts believe that…
Filed under: News - @ February 3, 2025 2:21 am