The breeze of the reserve market in the crypto markets quickly faded away following Trump’s announcement. Bitcoin plummeted over 10% to $84,000 while Ethereum tested $2,000 with a 20% drop. The impact of the sharp decline led to the liquidation of a $1.1 million position, and a $13.4 million order was wiped out in one go.

With the official initiation of trade wars, sales in risky assets accelerated. Cryptocurrencies, which had shown a surge with President Donald Trump’s strategic reserve announcement, changed direction once again due to trade war fears. The excitement of the rise for investors only lasted a day. The crypto market, led by Bitcoin, turned red. Starting at around $94,230 yesterday, Bitcoin dropped over 12% to $82,000. BTC then partially recovered to $84,200. The decline in Ethereum (ETH) exceeded 20%, starting over $2,500 and dropping to $2,000. XRP and Solana (SOL), announced to be included in Trump’s reserve list, saw drops of 25%, and Cardano (ADA) 55%. In crypto futures markets, 314,000 investors were liquidated, closing positions totaling $1.1 billion.

Notably, the liquidation of a $13 million order in one go caught attention. Trump doubled the customs duties on China to 20% while tariffs on products imports from Canada and Mexico by the U.S. will increase to 25% starting tomorrow. In response, Canada announced a 25% additional tax on U.S. products, and China declared a 15% tariff on some U.S. goods. Trump reiterated that reciprocal tariffs for countries applying taxes on U.S. products will come into effect on April 2.