Market Turmoil: Crypto and Stocks Plunge on Trump's Tariff Threat

Early Friday saw a significant downturn in both cryptocurrency and stock markets following former President Donald Trump's threat to impose "massive" tariffs on Chinese goods.

Bitcoin experienced a dip, momentarily falling below $119,000. However, other leading cryptocurrencies faced even steeper declines.

Ethereum plummeted nearly 5% in a single hour, settling around $4,107. Solana also suffered a similar fate, dropping to approximately $211.

This market-wide slump triggered a surge in crypto liquidations. CoinGlass data reveals a staggering $459 million liquidated within a single hour, predominantly from long positions. The 24-hour liquidation total reached almost $773 million.

Traditional markets mirrored the crypto downturn. The Nasdaq Composite was down 1.77%, the S&P 500 decreased by 1.25%, and the Dow Jones Industrial Average fell by 0.83%.

Trump stated on Truth Social that, despite potential short-term pain, the tariff policy would ultimately benefit the U.S. He emphasized that increased tariffs on Chinese products were a serious consideration, along with other countermeasures.

Key Takeaways:

• Increased trade war fears are impacting both crypto and traditional markets.
• Ethereum and Solana experienced sharper declines compared to Bitcoin.
• Significant liquidations occurred, indicating high market volatility.