Total crypto market cap tanks over 9% following Trump's latest round of retaliatory tariffs on China

The cryptocurrency market experienced a dramatic downturn as total market capitalization plunged over 9% following President Trump's announcement of retaliatory tariffs against China. Bitcoin and major altcoins suffered significant losses, with the broader crypto ecosystem shedding at least $125 billion in value when Trump initially threatened countermeasures earlier Friday.

This substantial market correction highlights the continued sensitivity of digital assets to geopolitical tensions and trade war developments. The cryptocurrency market cap decline demonstrates how traditional economic policies still heavily influence blockchain-based investments, despite the decentralized nature of Bitcoin and other digital currencies.

Major cryptocurrencies including Ethereum, Bitcoin, and DeFi tokens faced widespread selling pressure as investors fled to safer assets amid escalating US-China trade tensions. The 9% market capitalization drop represents one of the most significant single-day declines in recent months, underscoring the volatility that continues to characterize the cryptocurrency space.

This latest crypto market crash serves as a reminder that digital assets remain susceptible to macroeconomic factors and international trade disputes, challenging the narrative of cryptocurrency as a hedge against traditional market turbulence.