On August 1, U.S. President Donald Trump introduced new tariffs that negatively impacted financial markets, including the cryptocurrency market.
Trump’s New Tariffs
President Donald Trump enacted tariffs on imports from several countries. He imposed a 10% tariff on goods imported from all countries except for 92 nations listed under higher rates. Tariffs on Canadian goods were increased from 25% to 35%. Trump stated:
"I have determined that it is necessary and appropriate to deal with the national emergency declared in Executive Order 14257."
Crypto Market Reaction
Following the tariff announcement, the cryptocurrency market reacted with significant declines. Bitcoin fell to a multi-week low of under $114,500, losing over $4,000 in a single day. Altcoins, such as ETH and XRP, also suffered substantial losses, dropping 6%, while others experienced even worse declines.
Consequences for Traders
This sharp price drop led to the liquidation of over 160,000 traders' positions, with total losses reaching up to $650 million. The majority of liquidations were associated with long positions, totaling more than $600 million.
The introduction of new tariffs has become a significant event negatively affecting the cryptocurrency market. Financial market participants continue to analyze the situation and evaluate potential further implications for the economy.
