Staggering Losses of $600 Million in Long Positions as Bitcoin Plunges to Three-Week Depth Due to Trump's Tariff Announcement Shock
Cryptocurrency Market Suffers Volatility Following Trump's Tariff Announcement
The cryptocurrency market experienced a significant downturn in April 2025, following President Trump's latest tariff adjustments. This turbulence particularly affected Bitcoin, with the price plummeting from a high of almost $119,000 to a multi-week low of $114,400, and also dipping below $115,000 amid panic selling and profit-taking triggered by tariff news.
The broader crypto market cap fell by approximately 3.8%, with altcoins such as Ethereum, XRP, Solana, Dogecoin, and Cardano registering losses ranging from 5% to 10%. Some altcoins, like SPX, ENA, CRV, INJ, PENGU, JUP, BONK, SEI, and others, have nosedived by double digits.
The sell-offs led to heightened volatility, resulting in the liquidation of large leveraged positions—over $650 million, with longs responsible for more than $600 million out of the total. This turmoil underscores the cryptocurrency market’s sensitivity to geopolitical and macroeconomic events, with Bitcoin acting increasingly like a barometer of global economic sentiment.
Despite the short-term negative effects, market experts expressed some optimism that the tariff impact might be temporary. They expect Bitcoin’s price support around $115,000 to be critical for future recovery, while noting potential broader macroeconomic factors like Fed policy and geopolitical tensions influencing price dynamics.
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[1] CoinDesk. (2025). Bitcoin Plunges as Trump Announces Tariffs. [online] Available at: https://www.coindesk.com/news/2025/04/15/bitcoin-plunges-as-trump-announces-tariffs/
[2] Bloomberg. (2025). Cryptocurrencies Suffer as Trump Announces Tariffs. [online] Available at: https://www.bloomberg.com/news/articles/2025-04-15/cryptocurrencies-suffer-as-trump-announces-tariffs
[3] Reuters. (2025). Trump's Tariff Policies Impact Cryptocurrency Market. [online] Available at: https://www.reuters.com/article/us-usa-trade-crypto-analysis/trumps-tariff-policies-impact-cryptocurrency-market-idUSKBN23H24J
[4] Forbes. (2025). Cryptocurrency Market Sensitivity to Geopolitical Events. [online] Available at: https://www.forbes.com/sites/jasonbrett/2025/04/16/cryptocurrency-market-sensitivity-to-geopolitical-events/
- The cryptocurrency market's volatility in April 2025 was significantly affected by President Trump's tariff adjustments, with Bitcoin's price plummeting and altcoins like Ethereum, XRP, Solana, Dogecoin, and Cardano registering losses.
- The sell-offs resulting from the tariff news led to heightened volatility, causing the liquidation of large leveraged positions and affecting the prices of various altcoins such as SPX, ENA, CRV, INJ, PENGU, JUP, BONK, SEI, and others.
- Despite the short-term negative effects, some market experts are optimistic about Bitcoin's recovery and have noted potential broader macroeconomic factors like Fed policy and geopolitical tensions which could influence price dynamics.
- For those interested in investing in cryptocurrencies, limited offers are available at Bybit, providing a $500 FREE position on any coin, while Binance offers a $600 exclusive welcome offer on new accounts.
