Short sellers in the crypto market faced their third-largest loss of 2025 on April 9, as Bitcoin staged an unexpected rally following President Donald Trump’s decision to pause tariffs for 90 days on most countries, excluding China. The sudden surge sparked a rebound in risk assets, with Bitcoin rising more than 5% to $81,905. Ethereum led the altcoin charge with a 10% jump to $1,639, followed by gains in XRP, Solana, and BNB. The rally caught bearish traders off guard, resulting in $589.41 million in total liquidations, with short positions accounting for $374 million of the losses.
The market rally has drawn political scrutiny, with lawmakers calling for an investigation into potential insider trading linked to the tariff announcement. Senator Elizabeth Warren raised concerns about Trump’s timing and tone in his social media posts before the policy shift, particularly his bullish message on Truth Social urging people to buy DJT. Warren urged regulators to examine whether the president’s actions benefited allies or donors, warning of ethical concerns surrounding the use of trade policy to influence market sentiment for personal or political gain.
Senator Adam Schiff also questioned whether anyone in the administration had advanced knowledge of Trump’s tariff decision and used it to profit from market swings. He raised concerns about the volatility caused by abrupt policy shifts and whether anyone within the administration had bought or sold stocks to profit at the public’s expense. The investigation into potential insider trading surrounding the tariff announcement may shed light on the market manipulation that occurred on April 9.
The sudden market rally on April 9 caused significant losses for short sellers in the crypto market, with $374 million in short positions liquidated as Bitcoin surged more than 5% to $81,905. Ethereum led the altcoin charge with a 10% jump to $1,639, while XRP, Solana, and BNB also recorded gains. The unexpected rally caught bearish traders off guard, leading to the third-largest loss for short sellers in 2025. The market rebound was fueled by President Trump’s decision to pause tariffs for 90 days, sparking a broader rally in risk assets.
Lawmakers have raised concerns about potential insider trading linked to Trump’s tariff announcement, with Senator Elizabeth Warren calling for a formal investigation into whether the president manipulated the market to benefit his Wall Street donors. Warren highlighted the ethical concerns surrounding the use of trade policy to influence market sentiment for personal or political gain. Senator Adam Schiff also questioned whether anyone in the administration profited from advanced knowledge of Trump’s tariff decision, raising concerns about market manipulation and insider trading.
The investigation into potential insider trading surrounding Trump’s tariff announcement may shed light on the market manipulation that occurred on April 9, when short sellers in the crypto market faced significant losses. The sudden rally in Bitcoin and altcoins caught bearish traders off guard, resulting in $589.41 million in total liquidations, with short positions accounting for a large portion of the losses. Lawmakers have urged regulators to examine whether anyone in the administration benefited from advanced knowledge of the tariff announcement, raising concerns about market manipulation and insider trading.
