Cryptocurrency markets were a sea of red within the last 24 hours, triggered by growing geopolitical tensions and a wave of U.S. tariffs against China, Canada, and Mexico.
ETH/USD and XRP/USD dropped more than 17%, while Solana declined by 9% after losing double-digit percentages within an hour of Trump’s announcement of fresh tariffs. Bitcoin (BitfinexUSD) price was down 4.1% at the time of writing (09:57 GMT).
This decline wiped out all market gains made since December, bringing prices back to where they were before the U.S. election.
Total (EPA:TTEF) liquidations exceeded $2.2 billion, the largest such event this year and among the biggest in crypto history. Ethereum led the liquidation wave, with combined long and short liquidations exceeding $609.9 million.
More than 730,000 traders were affected by the mass sell-offs, as uncertainty gripped the market.
The single largest liquidation order occurred on Binance, where a tether-margined ETH trade worth $25.6 million was closed.
Futures markets were hit hard as well, with traders of ether-linked products losing over $600 million in the past 24 hours. Combined losses on XRP and DOGE futures totaled $150 million, while altcoin-tracked products shed $138 million. Ether-tracked futures lost $84 million.
The Investing.com OFFICIAL TRUMP Index token, a memecoin associated with U.S. President Trump, dropped 12%. Moreover, World Liberty Financial (WLFI), a crypto project backed by the Trump family, saw its January crypto investments decline 20%.
The sell-off comes amid escalating trade tensions sparked by U.S. President Donald Trump’s decision to impose steep tariffs on Canada and Mexico.
The move disrupted North American trade relations, with both countries threatening retaliatory measures. It drew sharp criticism from economists and global leaders, with The Wall Street Journal editorial board labeling it the “Dumbest Trade War in History.”
Financial markets are bracing for economic repercussions, as higher tariffs could increase costs in sectors such as automotive and agriculture, leading to broader economic instability.