The cryptocurrency market experienced a dramatic downturn following President Trump’s announcement of new tariffs, with Bitcoin and Ethereum prices sharply falling. Key points include: 1) Global trade was disrupted by the tariffs which increased duty rates on imports from partners. This resulted in immediate price drops for both Bitcoin, dropping to $83,500, and Ethereum, shedding over $1,800. 2) Over $490 million worth of leveraged positions were liquidated across the market, impacting more than 160,000 traders. The largest liquidation was on Binance, where an ETH/USDT position valued at $12 million was closed. 3) Market sentiment shifted from optimism to fear, leading to a steep drop in the Crypto Fear & Greed Index to 24. This decline coincided with a significant sell-off across the traditional financial market as the S&P 500 futures lost $2 trillion in value. Major tech stocks like Apple and Nvidia also suffered losses. 4) These losses were magnified by a correlation between fears in traditional finance, causing panic selling across both crypto markets, ultimately leading to a steep decline. The root cause of this crash was directly linked to the U.S.’s trade tariffs announced.