Trump Hikes Global Tariffs to 15%: Why Crypto Traders Are Bracing for More Pain

President Donald Trump has escalated global tariffs from 10% to 15%, slamming countries for exploiting the US economy. This bold move, announced just days after a Supreme Court ruling struck down parts of his prior plan, has unleashed risk-off waves across markets. Bitcoin tumbled below $65,000 amid over $470 million in liquidations, dragging altcoins down with inflation fears looming large. Crypto traders are watching closely as macro headwinds test the sector's resilience.

The tariff escalation hit on February 21, 2026, right after the Supreme Court invalidated Trump's initial broad tariff program, forcing a pivot to a temporary 10% levy under the 1974 Trade Act before jumping to the 15% statutory max. Pawnie's Web3 news recap highlighted how Trump framed it as retaliation for decades of unfair trade, with Bank of America warning of a $1 billion liquidation trap as leverage unwinds. VirtualBacon's update pinned Bitcoin's drop below $65K directly to this news, noting $470 million in liquidations and the Fear & Greed Index plunging to extreme fear levels around 5-6. Yahoo Finance reported Bitcoin initially holding firm at $68,273 up 2% intraday, but weekly losses stood at 2% amid $316 million in Bitcoin ETF outflows led by BlackRock and Fidelity. Ethereum fared worse, down 5% weekly with $123 million pulled from funds. Investing.com detailed whale selling intensifying the slide, with BTC hitting $64,569 and lows near $63,939, echoing early February supports around $60K. Vitalik Buterin's $8.2 million ETH dump added fuel, per Pawnie, while GroveXchange noted earlier tariff jitters keeping BTC hovering at $68K before the break. Gold surged past $5,100 to new highs as safe-haven demand spiked, contrasting Bitcoin's struggle—a classic risk-off rotation. Altcoins like XRP posted $1.93 billion in realized losses, the biggest since FTX, with $TRUMP and $MELANIA tokens wiping $4.3 billion from retail bags. US GDP grew just 1.4% annualized in Q4 with PCE inflation at 2.9%, complicating Fed cuts and amplifying tariff-driven growth fears.

Crypto markets absorbed over $470 million in liquidations, pushing total market cap toward $2.3 trillion and BTC toward critical $60K support. Traders face heightened volatility from whale dumps and ETF redemptions, creating treacherous conditions for leveraged positions. Yet, for cautious dip buyers, extreme Fear & Greed readings signal potential bottoms akin to 2022 patterns, offering entry points if macro stabilizes.

Trump's tariff gambit underscores persistent US-China trade tensions bleeding into crypto. Savvy traders will monitor $65K resistance and Fed signals closely. While short-term pain lingers, history shows these shocks often precede resilient rebounds for Bitcoin.

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