Global cryptocurrency markets experienced a dramatic downturn after US tariffs on Chinese imports were announced, resulting in a staggering $9.5 billion in liquidations and wiping out billions of dollars from investor portfolios. Bitcoin and Ethereum, two of the most popular cryptocurrencies, suffered significant declines, as investors scrambled for safety amidst rising geopolitical tensions. 1.5 million traders faced substantial losses as a result of panic selling, further fueling the downturn. The market capitalization of the cryptocurrency sector fell sharply to $3.74 trillion, reflecting a decline of nearly 9%. Experts attributed this volatile shift to increased trade war anxieties triggered by President Trump’s new tariffs, which sent shockwaves through global markets and prompted investors to pull out of riskier assets such as cryptocurrencies. Bitcoin declined 7.91%, dropping below $111,800 while Ethereum fell more than 11.54% to $3,827, with exceptionally high trading volume on both platforms. Bitcoin’s dominance rose to a significant 59.51%, signifying investors’ search for stability in the leading cryptocurrency amidst the market chaos. This decline led to a sharp spike in trading activity as the total crypto trading volume soared to $515 billion, reflecting panic-driven buying and selling and further liquidations. The impact was most pronounced on Bitcoin, with $1.37 billion in liquidation losses attributed to the coin alone. Zcash (ZEC) emerged as a relative bright spot, experiencing a notable increase of 10.36%, while MemeCore (M) and UNUS SED LEO also saw positive gains. The sharp decline highlights investors’ shifting focus towards more stable and defensive assets like privacy coins and gold-backed cryptocurrencies during periods of market instability.