Crypto Crashing Following Trump's Tariff Announcement Sparks Major Market Liquidation

Bitcoin and the broader cryptocurrency market experienced a severe downturn as traders reacted to mounting macroeconomic uncertainty triggered by international trade tensions. On Saturday evening, the world’s largest digital asset dropped approximately $4,000 in a matter of just two hours, plummeting from roughly $95,500 to an intraday floor near $91,935. This sudden collapse generated a cascade of forced liquidations across leveraged positions, erasing over $500 million in long positions within 60 minutes alone and totaling $525 million in crypto long liquidations during the period, according to market tracking data.

At present, Bitcoin trades significantly lower than those levels, with the asset currently valued around $87,520. The broader market pullback has extended beyond the initial sell-off, with cryptocurrency values declining approximately 5.62% over the past week. The global Bitcoin market capitalization has contracted to roughly $1.749 trillion, while 24-hour trading volume stands at $1.3 billion.

Massive Market Sellout and Forced Liquidations Strike Bitcoin

The dramatic sell-off coincided precisely with President Trump’s announcement of sweeping tariff proposals targeting European nations. The administration outlined a plan to introduce a 10% tariff on goods from eight countries—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland—with the rate escalating to 25% by June 1 should negotiations fail to produce an agreement. The tariff measures were explicitly linked to U.S. objectives regarding Greenland, heightening geopolitical friction across the Atlantic.

The intensity of the crypto crashing during this period reflected traders’ concerns about escalating trade wars and their potential ripple effects on global economic growth. European leadership responded with sharp rebuttals, with the targeted nations issuing a collective statement warning of a “dangerous downward spiral,” while Danish Prime Minister Mette Frederiksen declared that Europe would not tolerate blackmail. Demonstrations erupted across Denmark and Greenland throughout the weekend, signaling deeper political consequences from the proposal.

Interestingly, traditional safe-haven assets demonstrated opposite movement during this tumultuous period. Gold surged to fresh all-time highs, reaching approximately $4,670 per ounce as investors sought refuge from cryptocurrency and equity market volatility.

Tariff Threats and Geopolitical Tensions Fuel Market Uncertainty

Compounding the immediate market pressures, the U.S. Supreme Court is preparing to adjudicate a significant case that could fundamentally alter the landscape for presidential trade authority. At the center of this legal proceeding is whether President Trump possessed the constitutional and statutory power to invoke the International Emergency Economic Powers Act (IEEPA) to declare trade deficits a national emergency and subsequently impose broad tariff measures, including a baseline 10% duty across most imports.

The stakes extend far beyond cryptocurrency markets. Should the Supreme Court rule against the administration’s tariff authority, the federal government could face obligations to refund more than $100 billion in tariffs already collected—a development that would undermine budget assumptions tied to defense spending and other federal programs. Conversely, if the court upholds Trump’s emergency powers, existing tariffs remain enforceable and future measures, including those targeting European goods tied to Greenland, could proceed without legal impediment.

Supreme Court Case Could Reshape Trade Policy and Market Confidence

This legal uncertainty has prompted importers and traders to adopt defensive postures. Many are deliberately maintaining shipments in an “unliquidated” status to preserve potential refund entitlements, a strategy that adds another layer of complexity to cross-border commerce and market dynamics.

Bitcoin’s current positioning within these macro crosscurrents reflects broader investor anxiety. The asset remains positioned approximately 3% beneath its seven-day peak of $95,468, oscillating within a range defined by its seven-day low of $92,284. With a circulating supply of approximately 19.98 million BTC against a fixed maximum supply of 21 million coins, the cryptocurrency continues to experience volatility reflecting external geopolitical and economic headwinds.

The broader narrative underscores how deeply interconnected cryptocurrency markets have become with traditional macroeconomic factors, particularly when policy uncertainty reaches levels that threaten established international trade frameworks. Whether the Supreme Court decision, tariff negotiations, or geopolitical developments surrounding Greenland will provide stabilizing direction for crypto crashing remains an open question for market participants monitoring these developments.