Bitcoin Crashes Below $75K as Global Markets Sink on U.S.-China Tariff Escalation

Bitcoin Dives as U.S.-China Trade War Escalation Sparks Global Sell-Off

Bitcoin plunged below $75,000 early Wednesday, falling over 6% in a single day, as global financial markets were rattled by the U.S.’s decision to impose a massive 104% tariff on Chinese imports. The impact was immediate across both crypto and traditional markets, as investors dumped risk assets amid growing fears of a derailed global economic recovery.

Asia-Pacific Markets Tank at the Open

• Japan’s Nikkei 225 dropped 4%.

• South Korea, Australia, and New Zealand posted similar declines.

• Australian stocks fell 2%, erasing gains from the previous session.

Meanwhile, in the U.S.:

• 📉 S&P 500 erased a 4.1% gain, ending down 1.6%.

• 📉 Nasdaq slipped 2.1%.

• 📉 Dow Jones dipped 0.8%.

Bitcoin, closely correlated with tech stocks, tracked the Nasdaq’s decline, reinforcing its current role as a macro risk asset. 

Crypto Market Hit by Liquidations and Fear

According to Coinglass, in the past 24 hours:

• 💥 136,779 traders were liquidated

• 💸 Total liquidations hit $404.57 million

• 📊 Short positions now make up 55% of open interest, flipping sentiment decisively bearish

The Bitcoin Fear & Greed Index slid into “extreme fear”, signaling broad market caution.

Trump’s Tariff Tsunami Fuels Panic

With no diplomatic progress in sight, President Trump’s 104% tariff hike on Chinese imports has triggered a wave of de-risking. Analysts fear these aggressive moves could derail global trade and plunge financial markets into a new phase of volatility. 

“Bitcoin has already survived Mt. Gox, the Covid crash, the China mining ban, and the crypto winter. Now you’re panicking over tariffs?” said crypto analyst Quinten Francois on X. 

“Just another opportunity you’ll wish you took.” 

Despite the crash, some investors view this dip as a strategic buying opportunity, citing Bitcoin’s history of resilience in the face of macro shocks. Still, in the short term, volatility is expected to remain high as markets adjust to the new economic risk landscape.