Bitcoin plunged below $93,000 after President Trump announced new tariffs on Mexico, Canada, and China, triggering market turmoil.
The news about new tariffs on U.S. trade allies caused big drops in digital assets and increased instability in financial markets over the weekend and into Monday.
Crypto Market Hit Hard as Tariffs Trigger Bitcoin Liquidations
On Saturday, President Donald Trump announced on Truth Social that he has implemented a 25% tax on goods coming from Mexico and Canada, and a 10% tax on imports from China. The crypto market responded quickly, causing Bitcoin (BTC) to fall below $102,000 and reach a low of $92,776 on Coinbase.
Crypto analytics company Coinglass reported that more than $2.27 billion in leveraged trades were closed, mostly impacting traders who were hoping Bitcoin’s price would go up.
ByBit CEO Ben Zhou said that the real bankruptcy amount might be four times higher. He mentioned that ByBit alone experienced over $2 billion in liquidations. He said that Coinglass’s numbers might be too low because of limits with API data.
“I am afraid that today’s real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b. FYI, Bybit 24hr liquidation alone was $2.1B.
As you can see in below screenshot, Bybit 24hr liquidations recorded on Coinglass was around $333m, however, this is not all of the liquidations. We have api limitation on how much feeds are pushed out per second. From my observation, other exchanges also practice the same to limit liquidation data. Moving forward, Bybit will start to PUSH all liquidation data. We believe in transparency.”
After the market issues, Trump said he had a “friendly” talk with Mexican President Claudia Sheinbaum. They decided to delay the tariffs for a month to give time for discussions.
Sheinbaum confirmed the talks and said that Mexico will send 10,000 troops to the southern border to fight fentanyl smuggling into the U.S. Trump is expected to meet with Canadian Prime Minister Justin Trudeau to talk more.
Since news about possible tariff talks came out, the markets have improved a bit. Bitcoin is getting close to $100,000 again, and big stock indexes are stabilizing. Most altcoins are still much lower than their peak values and are having a hard time gaining back their strength.
