Global financial markets experienced one of the sharpest sell-offs of the year last Friday, after the U.S. government announced 100% tariffs on Chinese imports and new export restrictions on key technologies. The unexpected escalation of trade tensions between the world’s two largest economies sent shockwaves through global markets, triggering a risk-off reaction that hit everything from equities to cryptocurrencies.
Traditional financial markets reacted immediately: the S&P 500 fell around 2.7%, the Nasdaq dropped 3.6%, and European and Asian indices followed with steep losses. Safe-haven assets such as gold and U.S. Treasuries surged as investors fled risk exposure. The sudden tariff announcement heightened fears of supply-chain disruptions, weaker corporate earnings, and slower global growth — leading to the highest volatility levels seen in months.
Rüdiger Born our Head of Trading sits down with COO Dariusz Kowalczyk, to break down the situation. What triggered this extreme reaction — and what could happen next? Watch the full conversation:
Crypto Hit Harder Than Equities
While equities fell sharply, the impact on the cryptocurrency market was even more dramatic. Over $19 billion in leveraged positions were liquidated within 24 hours — the largest single liquidation event in crypto history. Bitcoin plunged more than 14% from its highs, briefly trading around $104,000, while major altcoins suffered declines up to 90% as cascading liquidations amplified the sell-off.
While the market reaction highlighted how macroeconomic events can temporarily influence digital assets, the severity of last week’s sell-off was largely driven by inefficient investment strategies and excessive use of leverage among short-term traders. Many overexposed positions were automatically liquidated as volatility spiked, creating a self-reinforcing wave of selling across exchanges. This underlines the importance of disciplined portfolio management, controlled risk exposure, and a long-term investment horizon
Strategic Risk Management Pays Off
Despite the market turbulence, Bitward navigated the situation from a position of strength. Our risk-management framework — including disciplined position sizing, tight exposure controls, and a defensive allocation — enabled us to keep volatility within targeted limits and avoid forced liquidations. Most importantly, the sudden dislocation offered a rare opportunity: as weaker hands were flushed out of the market, we strategically accumulated high-conviction assets at attractive valuations.
This proactive approach allowed us to turn market panic into portfolio strength. By buying quality assets during the drawdown, we not only enhanced our long-term positioning but also laid the groundwork to capture potential upside as the market stabilizes and macro conditions evolve.
Looking Ahead
Volatility remains elevated, and further developments in U.S.–China trade relations could continue to shape market sentiment. However, we believe last week’s events reaffirm a key investment principle: with the right preparation, periods of dislocation can become powerful opportunities. Bitward remains focused on disciplined execution, active risk management, and capturing value where others see uncertainty — ensuring our investors are well-positioned for the next phase of market growth.
Turn volatility into value. Explore how disciplined portfolio management can turn market turbulence into long-term growth 👉 connect with our Investor Relations team today.
