NewsBTC
Feb 3, 2025
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Crypto Market Sees $2 Billion in Liquidations Following Trump’s Tariff Announcement

As February started, the cryptocurrency market experienced significant turmoil, resulting in over $2 billion in liquidations. Bitcoin's price fell near $90,000 following new tariffs imposed by President Trump on Canada, Mexico, and China.

$2 Billion In Crypto Liquidations

  • Trump announced plans for increased tariffs, causing major disruption in crypto markets.
  • More than $2 billion in liquidations occurred within 24 hours of the announcement, according to Coinglass.
  • Bitcoin dropped to $95,200, the lowest price in three weeks.
  • Ethereum fell to approximately $2,800, erasing gains made since early November.
  • Market observers noted that the tariff news led to massive leverage liquidations among cryptocurrencies.

Tariffs Might Trigger An Inflation

  • Analysts expressed concerns that new tariffs could lead to inflation, negatively affecting digital asset sentiment.
  • Implied volatility for Bitcoin rose by 4% to 54%, indicating increased market uncertainty.
  • Experts anticipate ongoing volatility due to potential negative catalysts emerging in the coming weeks.

A Bitcoin Boom?

  • Some analysts suggest that tariffs may weaken the US dollar, potentially favoring Bitcoin growth.
  • An increase in inflation might lead foreign residents to adopt Bitcoin as a hedge against currency debasement.