The crypto markets suffered a severe downturn as a new wave of U.S. tariffs on Canada and Mexico sparked concerns of a global trade war. XRP, Dogecoin (DOGE), and Cardano (ADA) led the slump, each plunging over 25% and reversing all gains made since December.
With market sentiment turning risk-averse, most major cryptocurrencies have lost between 40-50% in the past month, marking one of the sharpest declines in recent years. The overall market capitalization dropped by 12%, while the CoinDesk 20 (CD20) index lost 10%. Even Bitcoin (BTC) was not spared, shedding 6% in the past 24 hours.
Futures Liquidations Hit Record Levels
The sudden market drop triggered massive liquidations across crypto derivatives markets. Total liquidations exceeded $2.2 billion—the highest this year and among the largest in crypto history.
Traders holding long positions on Ether (ETH) suffered the most, losing over $600 million in liquidations, while XRP and DOGE traders collectively lost $150 million. Altcoin-tracked products saw $138 million wiped out, and Ether futures lost $84 million. The biggest single liquidation order was a $25 million ETH futures trade on Binance.
Ethereum Crashes 20% in a Day
While Bitcoin recorded an 8% decline over the weekend, Ethereum shocked the market with a staggering 20% drop. This sharp movement has raised concerns that ETH is behaving more like an altcoin rather than a major institutional asset.
“Massive long futures liquidation was observed over the weekend, with over $2 billion in futures stop-outs in the past 24 hours—the sharpest liquidation event in crypto history,” said Augustine Fan, Head of Insights at SignalPlus. “Markets are likely to remain risk-off as we await the U.S. equity market open.”
Trade War Triggers Market Panic
The sell-off follows U.S. President Donald Trump’s surprise decision to impose 25% tariffs on Canadian and Mexican imports. This move has fueled fears of a broader economic slowdown as both countries threaten retaliatory measures.
Financial markets are concerned that higher tariffs will increase costs for industries ranging from automotive to agriculture, potentially leading to job losses and higher consumer prices. With risk assets already on edge, the crypto market reacted with a violent sell-off, wiping out billions in value within hours.
What’s Next for Crypto?
With markets in full risk-off mode, traders are bracing for further downside. If traditional financial markets continue to react negatively to the tariff news, cryptocurrencies—especially altcoins—could see further declines.
For now, investors are closely watching the U.S. equity market open, which could set the tone for the next move in crypto prices.
