Crypto Markets Rattle as $450M in Futures Liquidated Amid US Tariffs

Crypto markets faced heightened volatility as over $450 million in futures were liquidated within 24 hours following the implementation of new U.S. tariffs. The move, announced by President Donald Trump, included a 25% tariff on auto imports and a minimum 10% tariff on all exporters to the U.S. China was hit hardest, with tariffs on some goods rising by 50%, while Indian exports faced a 26% duty hike.

The sudden trade policy shift triggered a wave of uncertainty across global financial markets. U.S. stock indices and cryptocurrencies gave up gains from the previous three days, while Asian markets dropped sharply on Thursday morning. U.S. 10-year Treasury yields fell to their lowest in over five months, and gold prices surged to a record high, reflecting increased demand for safe-haven assets.

Bitcoin (BTC) briefly touched $87,000 earlier in the week, driven by investor hopes for longer-term resilience. Ether (ETH) and XRP also showed strength, trading above $1,900 and $2.15 respectively. However, the bullish momentum faded as BTC and ETH fell nearly 5% from Wednesday’s highs before stabilizing.

By Thursday morning in Asia, BTC had retraced to just above $83,500, and ETH dropped to slightly over $1,800, erasing gains made earlier in the week. The sudden reversal sparked $230 million in forced liquidations, split between long and short positions. BTC futures alone saw $172 million in liquidations, with ETH contributing $120 million and other altcoins adding $50 million.

Liquidations occur when leveraged positions are forcibly closed due to margin shortfalls. While heavy one-sided liquidations often mark local tops or bottoms, Thursday’s mix of long and short wipeouts suggests broader market uncertainty amid geopolitical and economic tension.