Sharp declines in cryptocurrency and U.S. stock indices occurred amid newly imposed tariffs by the U.S. president.
Tariffs and Their Impact on Markets
The U.S. president confirmed the imposition of 25% tariffs on goods from Mexico and Canada, causing a shockwave through financial markets. Major U.S. stock indices dropped significantly: the S&P 500 by 1.76%, the Nasdaq Composite by 2.64%, and the Dow Jones by 1.48%. Nvidia shares fell nearly 9% to $114.06 per share, and Taiwan Semiconductor Manufacturing Company's (TSMC) ADR dropped over 4%.
Cryptocurrency Drops
The cryptocurrency market, initially buoyed by U.S. plans to include Bitcoin and others in its reserve, sharply reversed course. Bitcoin, which had risen to $93,000, fell to $83,061, and Ethereum plunged 15% to approximately $2,050. All top-market-cap cryptocurrencies ended with losses.
Mass Position Liquidation
In the past 24 hours, $1.07 billion in cryptocurrency positions were liquidated, with long positions accounting for $928 million. Bitcoin led with $391 million in liquidations, followed by Ethereum at $206 million. ADA, SOL, and XRP also faced significant liquidations.
The new tariffs had a significant impact on both crypto and stock markets, introducing volatility and mass position liquidations.
