Trump Drops 500% Tariff Shockwave, Crypto Trembles — Bitcoin Breakdown Ahead?
Overview
On Friday, US President Donald Trump endorsed a Senate proposal that could allow for tariffs of up to 500% on imports from countries that continue to purchase Russian energy. This proposal has raised alarm in the crypto market, leading to significant volatility and liquidations among traders.
Details of the Proposal
The proposed legislation would grant the President the authority to impose punitive tariffs on goods coming from nations deemed to be materially trading in Russian energy. This includes critical resources such as oil, natural gas, petroleum products, and uranium. Major buyers of Russian energy, including India and China, are specifically highlighted in the proposal.
The lawmakers behind the bill argue that it aims to restrict Russia’s export revenues. However, it is important to note that this measure is still in the proposal stage and has not yet become law. The specifics regarding how the tariffs would be applied and the comprehensive list of goods affected are still being finalized in committee discussions.
Market Reaction
The announcement of the potential tariffs led to immediate reactions in the markets. Crypto traders began to exit positions rapidly, resulting in an increase in volatility across major cryptocurrencies. Within 24 hours of the news, approximately $620 million in crypto positions were liquidated, affecting over 152,000 traders. Notably, a single large order of $30 million for BTC-USD was among the most significant transactions impacted.
Major altcoins, including XRP, Solana, and Cardano, experienced sharp fluctuations, and Ethereum’s price approached the $3,000 mark. Bitcoin itself experienced a 1% decline following the announcement. Over the past week, Bitcoin has lost close to 10% of its value after reaching an all-time high earlier in October.
Analysts have expressed concerns that a 500% tariff could lead to heightened panic selling in the crypto market, as it represents a dramatic increase compared to past tariff rates that had previously caused significant market downturns.
Impact on the Crypto Market
- The proposed tariffs could lead to increased volatility in the crypto market, as traders react to geopolitical developments.
- A significant liquidation of positions occurred shortly after the announcement, indicating a swift market response.
- Analysts warn that if implemented, the tariffs might lead to a decrease in Bitcoin and major altcoins’ prices due to heightened economic uncertainty.
- Potential disruptions in energy flows could result in increased energy prices, contributing to inflation and affecting risk assets, including cryptocurrencies.
- The crypto market remains sensitive to geopolitical events, highlighting its interconnectedness with broader economic factors.
Updated: 11/17/2025, 11:20:46 AM
