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Tension in global finance has spilled sharply into the crypto market, with digital assets posting steep losses after two disruptive triggers, Trump's tariff threats and poor US jobs data.
In just 24 hours, over $900 million in crypto liquidation swept across leading exchanges. The wave of forced sell-offs followed renewed pressure on global assets as Donald Trump vowed new tariffs if elected again. The proposed import taxes, ranging from 10% to 40%, mainly aimed at China, shook investor confidence.
Cryptocurrency, often viewed as a high-risk bet, became an early casualty. The market lost nearly 4% in total value. Bitcoin price dipped below $ 114,200, losing around 3%, while Ethereum fell by over 5.5%. Altcoins like Solana, XRP, and Cardano also sank, with some tumbling over 8% in hours.
Adding to the concern for the markets owing to the Trump tariffs, the latest US job numbers came out showing a slow momentum. Employment data from July indicated that fewer jobs were created than expected, which meant less spending power and future weakness for the US economy. For traders, this raised fears about demand, rate policies, and risk appetite. It also deepened the sell-off already in motion.
Markets responded instantly to this incident. Exchanges like Binance and Bybit reported major liquidations, especially of leveraged long positions. These trades, built on borrowed funds, were auto-closed as prices plummeted swiftly. Bitcoin alone made up nearly half the total wiped value.
This selloff is more than a simple correction. The trajectory displays how shocks to global policy, especially trade-related ones, produce sudden eruptions in crypto market. Tariffs insinuate inflation and restricted trade flows. This is the fear factor shared by both normal and digital investors.
Despite the turbulence, some analysts see signs of resilience. Bitcoin held a vital support zone near $115,000. If this support zone remains intact, technical trends might stabilize. However, if trade tensions grow or more weak economic signals follow, crypto liquidation risks could return.
Presently, the focus has shifted from short-term gains to protection and survival. With political heat rising and economic clouds thickening, risk appetite in crypto markets may stay low.
What lies ahead depends on whether Trump’s tariff momentum turns into official policy and if US economic indicators continue to disappoint. Traders now face a testing period where caution may be the only defense against further losses.
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