Today, being August 1, means that many of US President Donald Trumps tariffs against multiple nations are supposed to be enforced, which had a drastic impact on the cryptocurrency market.

Bitcoin, for one, dropped by several grand in a day to a multi-week low of under $114,500.

Trumps Latest Tariff Adjustments

August 1 was a pivotal date for Trumps global policy, as he had outlined it as a deadline for tariff implementation against numerous nations. On Thursday, the POTUS signed an executive order to change the stipulations.

For one, he imposed a 10% tariff on goods imported from every country, aside from the 92 nations listed in an annex that are subject to higher rates. Trump also raised tariffs on Canadian goods from 25% to 35%.

I have determined that it is necessary and appropriate to deal with the national emergency declared in Executive Order 14257 by imposing additional ad valorem duties on goods of certain trading partners,” the POTUS said.

Many economic experts rushed to offer their insights on what the actual impact would be on the financial markets, including crypto. The Kobeissi Letter, for instance, noted that the trade war has lost all credibility.

The market says the trade war has lost all credibility:

President Trump just seemingly just randomly decided to raise tariffs on Canada from 25% to 35%.

On top of this, he imposed reciprocal tariffs on Vietnam, Switzerland, South Africa, Taiwan, Cambodia, Thailand, Malaysia,…

But Crypto Corrects

Recall that the entire crypto market plunged hard in April following Trumps original tariff call. At the time, BTC went from a six-digit territory to a five-month low of under $75,000 within days as the market wiped out nearly half a trillion dollars.

The landscape, for now at least, is not as painful, but BTC and the altcoins are still in the red after Trumps executive order. Bitcoins price had recovered to almost $119,000 yesterday after the Feds decision to maintain the interest rates, but dumped by more than four grand to a multi-week low of $114,400.

Although it has recovered some ground since then, its still more than 3% down on the day. The altcoins have it even worse, with ETH and XRP dropping by 6%, while SPX, ENA, CRV, INJ, PENGU, JUP, BONK, SEI, and several others have nosedived by double digits.

The total crypto market cap has seen over $150 billion gone since yesterdays peak and is down to $3.820 trillion on CG.

This substantial correction has wrecked more than 160,000 over-leveraged traders. The total value of liquidated positions is up to $650 million, with longs responsible for more than $600 million out of the total.

Liquidation Heat Map. Source: CoinGlass