Trump Tariff Threats Trigger Broad Market Selloff, Crypto and Equities Plunge
Markets convulsed Tuesday as former President Trump's tariff threats against European nations sparked a flight from risk assets. Bitcoin tumbled below $90,000 while ethereum cratered 6.5% to sub-$3,000 levels. The crypto rout liquidated over $1 billion in positions—92% being long bets—as traders scrambled to reduce exposure.
Equities suffered their worst session since October, with the Dow plunging 850 points and the S&P 500 erasing its 2026 gains. SAFE havens flourished as gold notched record highs, underscoring the defensive positioning.
The selloff exposed crypto's continued correlation with traditional markets. solana led altcoin losses with a 4% daily drop, while Cardano's 15% weekly decline highlighted the sector's volatility. 'When macro winds shift, crypto still behaves like a high-beta tech stock,' observed one portfolio manager.
