Crypto Market Crashes as Trump’s Tariffs on China Trigger Financial Chaos

The cryptocurrency market has been hit hard following the implementation of U.S. President Donald Trump’s tariffs on Chinese goods. Bitcoin dropped 4.1%, hitting $76,550, while Ethereum plunged 8.3%, reaching its lowest point since March 2023. The crypto market’s decline has intensified, with Bitcoin nearing a 30% drop from its peak earlier this year, and Ethereum now trading 70% below its all-time high. The overall market instability has been exacerbated by the broader financial turmoil, with major altcoins also suffering significant losses.

The market’s downturn mirrors broader economic disruptions, with Asian markets seeing sharp losses and the S&P 500 also facing a 1.5% decline. The 10-year Treasury yield spiked between 4.2% and 4.4%, contributing to a volatile financial landscape. The liquidation data from CoinGlass indicated over $400 million in crypto liquidations in the past 24 hours alone, highlighting the severe distress faced by investors.

The sharp cryptocurrency selloff coincides with the U.S. government’s intensification of its trade war with China. After Beijing failed to meet a deadline to lift its retaliatory tariffs, the Trump administration imposed an additional 104% tariff on Chinese imports. These new tariffs, announced on April 9, 2025, have caused global financial uncertainty, with markets reacting to the potential long-term impact of such aggressive trade measures.

In response to the tariffs, China imposed its own retaliatory actions, including a 34% tariff on U.S. imports, accusing the U.S. of economic “blackmail.” The Trump administration has justified these measures by accusing China of using non-market policies to dominate key manufacturing industries, and President Trump remains resolute in his stance, stating that the U.S. will “punch back harder” in the trade war.

Source: Naira metrics