#CryptoTariffDrop The recent crypto tariff drop was triggered by Donald Trump's announcement of sweeping reciprocal tariffs on over 100 countries, including a baseline 10% tariff on all imports. This move sent shockwaves through financial markets, causing a sharp decline in cryptocurrency values ¹.

*Key Affected Cryptocurrencies:*

- *Bitcoin (BTC)*: Dropped from $88,500 to $83,000, a 6.8% decline

- *Ethereum (ETH)*: Plummeted 26.53% to $2,135, its largest intraday percentage drop since May 2021

- *XRP*: Fell 5% to trade near $2.00

*Reasons Behind the Sell-Off:*

- *Increased Uncertainty*: Trump's tariff policy announcement created uncertainty, affecting investor sentiment across various sectors

- *High Leverage*: Traders using margin to amplify gains faced forced liquidations, accelerating losses

- *Continuous Trading*: Crypto markets operate 24/7, leading to heightened volatility and rapid price changes

*Market Impact:*

- *Massive Liquidations*: Over $2.2 billion in crypto positions were liquidated within 24 hours, surpassing liquidation events seen during the FTX and Terra Luna collapses in 2022

- *Institutional Investors*: Firms like BlackRock and Coinbase have increased exposure to digital assets through spot Bitcoin ETFs and custody services, potentially supporting prices ² ¹