- Bitcoin price plunges amid new U.S. tariffs on India.
- Cryptocurrency market sees $216 billion value drop.
- MicroStrategy buys 21,021 BTC post-market decline.
Bitcoin prices fell sharply after U.S. President Donald Trump announced a 25% tariff on India, causing market turmoil and significant crypto liquidations.
The tariffs heighten economic uncertainty, causing a $216 billion loss in crypto market value and sparking significant institutional and retail reactions.
Bitcoin Drops After U.S. Imposes Tariffs on India
Lede: The announcement of a new 25% tariff by U.S. President Donald Trump on India led to a significant decline in Bitcoin’s price, dropping to $117,400. The decision is set to take effect in August.
Responding to the tariffs, President Trump indicated India had historically high tariffs. This decision aligns with previous trade strategies involving China. Major financial losses were recorded in the crypto market following the news.
The deal with India is not finalized. India has been a good friend, but India has charged basically more tariffs than almost any other country… — Donald Trump, President, United States Source
Impact on the Crypto Market
Following the announcement, the crypto market lost $216 billion in value, indicating a broad sell-off. The liquidations primarily affected long and short positions, with Ethereum experiencing $67 million in losses.
The market turmoil saw significant liquidations totaling $469.81 million as traders reacted to the news. The absence of a trade resolution has compounded market uncertainty, as echoed by U.S. Commerce Secretary Howard Lutnick.
Institutional Interest and Historical Context
Institutional interest remained strong despite volatility. MicroStrategy’s decision to purchase 21,021 BTC suggests continued faith in Bitcoin’s long-term prospects, despite immediate price declines.
Historical analysis indicates that similar trade war announcements have led to short-term risk aversion. Bitcoin and Ethereum are traditionally impacted, experiencing sharp price volatility and unwinds of leveraged positions. DeFi TVL drops are common in such risk-off scenarios.
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