Trump Tariffs Trigger $875M Crypto Bloodbath; BTC Tests $65K
Bitcoin slides 9% to $65,200 as trade war fears ignite an $875 million liquidation cascade.
Markets capitulated Thursday.
Bitcoin plummeted 9% to $65,200 as news of aggressive European tariffs shattered the post-election calm. The move liquidated over $875 million in leverage across the board, marking the worst single-day wipeout of 2026.
The Tariff Shock
Liquidity vanished instantly. As reports surfaced regarding the administration’s new trade barriers with Europe, risk assets sold off in unison. The crypto sector, already fragile from weeks of low volume, took the hardest hit. CeFi lenders bore the brunt of the damage, with major desks reportedly facing margin calls as collateral values plunged.
The sell-side pressure is relentless. We are seeing structural exits, not just retail panic.
Ethereum fared worse, sliding over 6% to test support levels not seen since late 2025. Data from Farside Investors confirms the institutional flight: BlackRock’s ETHA ETF recorded consecutive days of heavy outflows, bleeding over $250 million this week alone. The narrative has shifted rapidly from accumulation to risk-off preservation.
Regulatory Headwinds
Adding fuel to the fire, the market is digesting reports that the DOJ is shutting down its dedicated Crypto Crime Unit, a move paradoxically viewed as bearish by institutions seeking clear guardrails. With the regulatory framework in flux and macro-economic tensions rising, the path to $70K is now blocked by a wall of overhead supply.
