Markets braced for chaos after Trump triggers record-breaking crypto crash

Core Viewpoint - Donald Trump's threat to impose new 100% tariffs on Chinese imports has led to significant turmoil in the cryptocurrency market, resulting in a historic crash and raising concerns about global market stability [1][2]. Cryptocurrency Market Impact - Approximately $400 billion was lost from the cryptocurrency market within 24 hours following Trump's tariff announcement [2]. - Bitcoin, the largest cryptocurrency, experienced a decline of over 10% on Friday, followed by an additional drop of 5.9% on Saturday, stabilizing at £83,838 [5]. Trading and Financial Losses - Traders utilizing borrowed funds for leveraged trading suffered record losses of $19 billion on Friday night, more than double the previous largest single-day loss of $8.5 billion in 2021 [4][6]. - The volatility led to significant panic selling, with futures markets indicating potential declines of around 6% for Asian markets [3]. Human Toll and Reactions - The crash has had severe personal consequences, including the suspected suicide of a prominent Ukrainian crypto entrepreneur, highlighting the emotional and financial distress caused by the market downturn [6][7]. - Some exchanges, such as Binance, faced operational challenges due to the high volume of trading activity, leading to delays and display issues [8]. Insider Trading Concerns - There are suspicions of insider trading, as anonymous accounts reportedly profited nearly $200 million by betting on price declines shortly before the tariff announcement [9].