Crypto Market Crash Due To US Tariffs & Other Crypto News

Crypto Market Crash and $500M Liquidation

Recently, the crypto market had a sudden crash. Prices of major cryptocurrencies like Bitcoin and Ethereum fell sharply, causing a wave of liquidations—forced closing of trading positions. Over $500 million worth of crypto positions were wiped out in a very short time. This meant that many traders saw their leveraged bets automatically closed at a loss.

Why did this happen? A big trigger was some major news from outside the crypto space—specifically, an announcement about new U.S. trade tariffs. The shock from this policy news spread fear across all markets, including crypto. When investors heard about the new tariffs, many became worried and started selling their assets. This mass selling, combined with the unwinding of over-leveraged bets, led to the steep drop in crypto prices. In simple terms, bad economic news, like surprise tariffs, can cause panic that makes crypto prices fall dramatically.

You can find the Tariffs table at the end of this article.

US Tariffs and Their Impact on Markets

Tariffs are taxes on imported goods. When the U.S. announced new tariffs, it signaled that trade tensions might be escalating into a trade war. For example, the government said it would impose a 25% tariff on auto imports and other goods from countries like Canada, Mexico, and China. This immediately made investors worry about the global economy because higher tariffs usually mean higher prices for imported products and a slowdown in trade.

This news hurt market sentiment worldwide. People started to worry about a global economic slowdown, and U.S. stock markets even fell nearly 2% after the announcement. Investors, in turn, became more cautious and began pulling out of riskier investments like cryptocurrencies. In short, when the economy shows signs of trouble because of tariffs, both stocks and crypto can suffer.

Bitcoin Price Movements and Trader Analysis

Bitcoin’s price has been like a rollercoaster lately. Before the recent crash, Bitcoin was reaching highs around $88,500. But after the tariff news and subsequent market sell-off, its price dropped to about $82,000. Traders are now wondering: where will Bitcoin go next?

Many traders focus on key technical levels on the charts. One important zone for Bitcoin seems to be between $76,000 and $80,000. In the past, Bitcoin has bounced back from that area, so many see it as a strong support level. Some experts believe that if Bitcoin can stay above this support, it might stabilize and eventually recover. Others are more cautious and think that if Bitcoin falls below that zone, it could lead to deeper losses. While there’s some optimism that Bitcoin could eventually climb back up, the short-term picture is still uncertain.

Justin Sun and the Stablecoin Depeg Incident

There was some drama involving Justin Sun, a well-known crypto entrepreneur. He made a big claim on social media about a stablecoin associated with Binance called FDUSD. Stablecoins are meant to maintain a steady value, usually $1. Justin Sun said that FDUSD was effectively “insolvent” and not fully backed by real money. His statement caused panic among FDUSD holders, and the stablecoin lost its peg, dropping to around 91 cents.

In response, the company behind FDUSD, First Digital, denied Justin Sun’s claims. They insisted that FDUSD is fully backed by reserves and is 100% solvent. They even announced plans to take legal action against Justin Sun for what they called a “smear campaign.” This incident shows just how fragile trust can be in the crypto space—a single influential tweet can cause a mini crisis, even for coins that are supposed to be stable.

Pi Network Token and Why It’s Not on Binance

Pi Network is a popular project with a huge community. Many people “mine” Pi on their phones using the Pi Network app. Despite having millions of users, the actual Pi token is not yet listed on major exchanges like Binance. Right now, Pi is still in a testing phase and hasn’t fully opened up its blockchain for trading.

The Pi community was very hopeful when Binance started a “Vote to List” campaign, where users could vote on which new tokens should be listed on the exchange. Many supporters expected Pi to be included. However, Binance excluded Pi from the vote because its rules required projects to be built on the BNB Chain, and Pi Network runs on its own blockchain. As a result, Pi missed out on this opportunity, and its unofficial market price dropped as disappointed users sold off their holdings. Even though this is a setback, the Pi community remains optimistic, waiting for the right time to see Pi listed on major exchanges.

Binance’s Token Voting and New Tokens Gaining Attention

Binance has introduced a “Vote to List” initiative where the community gets to decide which new tokens should be added to the exchange. Binance shortlists several emerging crypto projects, and users (typically those who hold Binance Coin, or BNB) vote for their favorite. It’s like a popularity contest for new coins, and a Binance listing can significantly boost a token’s price and reputation.

In the latest round, Binance featured 12 new tokens as candidates. These projects include ones like Virtual, Big Time, UX Link, Morpho, Zeta, and OnDo, among others. Binance limited this vote to projects built on the BNB Chain, which is why Pi Network was automatically excluded. The token vote generates a lot of buzz in each project’s community, and even if a project doesn’t win the vote, it still gains attention and potential new investors.

NFT Platforms Decline and Marketplaces Shutting Down

A few years ago, NFTs (non-fungible tokens) were the hottest thing in crypto. People spent huge amounts of money buying digital art and collectibles. But now, the NFT craze has cooled off dramatically. Daily trading volumes have fallen by more than 90% from their peak. This sharp drop has forced many NFT marketplaces to close or scale back their operations.

For example, Bybit recently announced that it is shutting down its NFT marketplace. Other platforms, like X2Y2, have also struggled or pivoted to new projects because the initial hype around NFTs has faded. The reason for the decline is that most people who bought NFTs during the boom were hoping to flip them quickly for a profit. Now that the bubble has burst, many of those platforms are finding it hard to justify keeping their NFT services running. This doesn’t mean NFTs are dead, but it does show that the market is moving on from the speculative phase to a more mature, utility-focused stage.

Crypto Adoption in the US: Active States and New Regulations

Crypto adoption in the United States is growing, but it varies by state and is strongly influenced by government policies. Many U.S. states are taking steps to support crypto. For instance, 26 states have introduced or are considering bills to hold Bitcoin as part of their state reserves. Arizona is leading the way, with plans to officially recognize and hold Bitcoin as a state asset. Other states like Texas, Wyoming, Minnesota, and Alabama are also making moves in this direction. However, not all states are on board—some are more cautious or resistant.

On the federal level, there have been significant developments as well. Under the current administration, there has been a surprising shift toward a more crypto-friendly stance. President Trump, in his second term, signed an executive order to explore creating a “Strategic Bitcoin Reserve” for the country. In addition, the federal government is now pushing for clearer crypto regulations. New legislative proposals aim to define what counts as a security, what as a commodity, and how stablecoins should be managed. These changes signal that crypto is becoming a more accepted part of the financial system, with both state and federal governments taking active steps to support its growth.

Summary and Final Thoughts

To sum it all up, here’s what’s happening in the crypto world right now:

• A sudden market crash, triggered by unexpected U.S. trade tariffs, led to over $500 million in liquidations.
• The new tariffs are causing worry around the world, and the crypto market was hit hard as investors sold off risky assets.
• Bitcoin’s price dropped from around $88,500 to $82,000, and traders are watching key support levels like $76,000 to $80,000 closely.
• Justin Sun’s controversial tweet about a Binance-associated stablecoin caused panic, making the coin lose its $1 peg, though the issuer quickly reassured everyone.
• The Pi Network token, despite its huge user base, wasn’t listed on Binance due to technical criteria, which disappointed many supporters.
• Binance’s “Vote to List” campaign has put several new tokens in the spotlight, while at the same time, the NFT market is cooling off and some platforms are shutting down.
• Meanwhile, crypto adoption in the U.S. is increasing. Many states are passing pro-crypto laws, and federal regulators are working on clearer rules that could pave the way for broader acceptance of digital assets.

In simple terms, the crypto world is very dynamic right now, with big swings in the market, interesting developments in regulation, and a lot of community involvement. Even if some events seem confusing or chaotic, they are part of a larger trend of crypto becoming more integrated into everyday financial life. Keep an eye on these changes—each one plays a role in shaping the future of digital currencies.

Sources

• Cointelegraph – Recent Reports on Market Liquidations
• Crypto-Economy – Analysis of U.S. Tariff Impacts
• Various Crypto News Outlets – Updates on Bitcoin Technical Levels
• Stablecoin Reports – Coverage on Justin Sun and FDUSD Depeg
• Pi Network Community Updates – Information on Token Listings
• Binance Announcements – Details on the “Vote to List” Initiative
• NFT Market Reports – Trends on Declining Trading Volumes and Platform Closures
• U.S. State and Federal Crypto Adoption Updates – Legislative and Policy Developments

Country	New US tariffs, %	Tariffs charged to the USA
Afghanistan	10	49
Albania	10	10
Algeria	30	59
Andorra	10	10
Angola	32	63
Anguilla	10	10
Antigua and Barbuda	10	10
Argentina	10	10
Armenia	10	10
Aruba	10	10
Australia	10	10
Azerbaijan	10	10
Bahamas	10	10
Bahrain	10	10
Bangladesh	37	74
Barbados	10	10
Belize	10	10
Benin	10	10
Bermuda	10	10
Bhutan	10	10
Bolivia	10	20
Bosnia and Herzegovina	35	70
Botswana	37	74
Brazil	10	10
British Indian Ocean Territory	10	10
British Virgin Islands	10	10
Brunei	24	47
Burundi	10	10
Cabo Verde	10	10
Cambodia	49	97
Cameroon	11	22
Cayman Islands	10	10
Central African Republic	10	10
Chad	13	26
Chile	10	10
China	34	67
Christmas Island	10	10
Cocos (Keeling) Islands	10	10
Colombia	10	10
Comoros	10	10
Cook Islands	10	10
Costa Rica	10	17
Côte d’Ivoire	21	41
Curaçao	10	10
Democratic Republic of the Congo	11	22
Djibouti	10	10
Dominica	10	10
Dominican Republic	10	10
Ecuador	10	12
Egypt	10	10
El Salvador	10	10
Equatorial Guinea	13	25
Eritrea	10	10
Eswatini	10	10
Ethiopia	10	10
European Union	20	39
Falkland Islands	41	82
Fiji	32	63
French Guiana	10	10
French Polynesia	10	10
Gabon	10	10
Gambia	10	10
Georgia	10	10
Ghana	10	17
Gibraltar	10	10
Grenada	10	10
Guadeloupe	10	10
Guatemala	10	10
Guinea	10	10
Guinea-Bissau	10	10
Guyana	38	76
Haiti	10	10
Heard and McDonald Islands	10	10
Honduras	10	10
Iceland	10	10
India	26	52
Indonesia	32	64
Iran	10	10
Iraq	39	78
Israel	17	33
Jamaica	10	10
Japan	24	46
Jordan	20	40
Kazakhstan	27	54
Kenya	10	10
Kiribati	10	10
Kosovo	10	10
Kuwait	10	10
Kyrgyzstan	10	10
Laos	48	95
Lebanon	10	10
Lesotho	50	99
Liberia	10	10
Libya	31	61
Liechtenstein	37	73
Madagascar	47	93
Malawi	17	34
Malaysia	24	47
Maldives	10	10
Mali	10	10
Marshall Islands	10	10
Martinique	10	10
Mauritania	10	10
Mauritius	40	80
Mayotte	10	10
Micronesia	10	10
Moldova	31	61
Monaco	10	10
Mongolia	10	10
Montenegro	10	10
Montserrat	10	10
Morocco	10	10
Mozambique	16	31
Myanmar	44	88
Namibia	21	42
Nauru	30	59
Nepal	10	10
New Zealand	10	20
Nicaragua	18	36
Niger	10	10
Nigeria	14	27
Norfolk Island	29	58
North Macedonia	33	65
Norway	15	30
Oman	10	10
Pakistan	29	58
Panama	10	10
Papua New Guinea	10	15
Paraguay	10	10
Peru	10	10
Philippines	17	34
Qatar	10	10
Republic of the Congo	10	10
Reunion	73	37
Rwanda	10	10
Saint Helena	10	15
Saint Kitts and Nevis	10	10
Saint Lucia	10	10
Saint Pierre and Miquelon	50	99
Saint Vincent and the Grenadines	10	10
Samoa	10	10
San Marino	10	10
São Tomé and Príncipe	10	10
Saudi Arabia	10	10
Senegal	10	10
Serbia	37	74
Sierra Leone	10	10
Singapore	10	10
Sint Maarten	10	10
Solomon Islands	10	10
South Africa	30	60
South Korea	25	50
South Sudan	10	10
Sri Lanka	44	88
Sudan	10	10
Suriname	10	10
Svalbard and Jan Mayen	10	10
Switzerland	31	61
Syria	41	81
Taiwan	32	64
Tajikistan	10	10
Tanzania	10	10
Thailand	36	72
Timor-Leste	10	10
Togo	10	10
Tokelau	10	10
Tonga	10	10
Trinidad and Tobago	10	12
Tunisia	28	55
Turkey	10	10
Turkmenistan	10	10
Turks and Caicos Islands	10	10
Tuvalu	10	10
Uganda	10	20
Ukraine	10	10
United Arab Emirates	10	10
United Kingdom	10	10
Uruguay	10	10
Uzbekistan	10	10
Vanuatu	22	44
Venezuela	15	29
Vietnam	46	90
Yemen	10	10
Zambia	17	33
Zimbabwe	18	35