How Trump's Tariff Threats Triggered a $19 Billion Crypto Collapse

The recent turmoil in the cryptocurrency market has underscored the fragility of digital assets amid geopolitical tensions. Triggered by US President Donald Trump's tariff threats, the market capitalization of cryptocurrencies fell dramatically, losing $19 billion in a matter of days.

Bitcoin saw a notable decline of 9%, while other cryptocurrencies faced even steeper losses, some plummeting by up to 60%. The volatility has raised concerns about the influence of leverage and automated trading on market stability.

Amid this chaos, institutional investors have pulled significant funds from Bitcoin and Ethereum ETFs, reacting to the heightened risks associated with the ongoing US-China trade conflict. Industry leaders are calling for regulatory scrutiny of major exchanges to ensure compliance and prevent conflicts of interest during such volatile periods.

As the market grapples with these challenges, the impact on small investors and the overall confidence in cryptocurrencies remains uncertain.