The cryptocurrency market suffered steep losses on Wednesday following the enforcement of new U.S. tariffs on Chinese goods by President Donald Trump, triggering a wave of selloffs across digital assets and traditional markets alike.
Bitcoin slid 4.1% to $76,550, briefly dipping below the $75,000 mark late Tuesday—just hours before the tariffs took effect. The flagship cryptocurrency is now down nearly 30% from its January high of $109,000, recorded shortly before Trump’s inauguration.
Ethereum posted an even sharper decline, plummeting 8.3% to $1,435.43—its lowest level since March 2023 and more than 70% below its all-time high of $4,891.70 reached in November 2021.
Altcoins and Broader Selloff
The broader crypto space wasn’t spared. Dogecoin plunged 16.3%, while Solana and Cardano lost 18% and 23.7%, respectively, over the past week. According to CoinGlass data, total crypto market liquidations hit $411 million in the last 24 hours, signaling widespread investor distress.
The crypto crash mirrored turbulence across global markets. Japan’s Nikkei 225 fell 2.6%, and Australia’s ASX 200 shed 2% in early Wednesday trading. U.S. equities also stumbled, with the S&P 500 dropping 1.5% on Tuesday—its sharpest single-day fall in weeks—bringing total losses since mid-February to nearly 20%.
Bond markets also reacted sharply. The 10-year Treasury yield surged between 4.2% and 4.4%, marking one of its steepest intraday climbs since World War II. Meanwhile, demand for three-year notes at Tuesday’s Treasury auction hit its weakest point since late 2023.
Trade War Escalation
The market turmoil follows the Trump administration’s latest escalation in its trade war with China. After Beijing failed to lift its retaliatory tariffs by the April 8 deadline, Washington imposed a sweeping 104% tariff on Chinese imports.
White House Press Secretary Karoline Leavitt confirmed the move, saying the tariffs took effect April 9. “The president, when America is punched, he punches back harder,” she said, adding that Trump still believes China is eager to return to the negotiating table.
Earlier, Trump had proclaimed April 4 as “Liberation Day” while announcing his tariff measures—moves that have drawn mixed responses worldwide. While some nations have sought to renegotiate trade terms with Washington, China retaliated with its own 34% levy on U.S. goods and vowed to “fight to the end,” accusing the U.S. of “blackmail.”
The Trump administration has defended its aggressive stance by accusing China of manipulating global markets through non-competitive policies that “decimate U.S. industry” and grant Beijing “unfair dominance” in critical sectors.
As tensions escalate, markets are likely to remain volatile, with investors watching closely for signs of de-escalation or further retaliation from Beijing.
