Trump’s Tariff Trigger Market Chaos as Liquidation Exceeds $1.81B

The cryptocurrency market has experienced a significant downturn in the past 24 hours, following the announcement of steep tariffs imposed by US President Donald Trump on imports from Canada and Mexico.

Bitcoin, experienced a relatively moderate decline of approximately 6.5%, falling to $93,600, and altcoins suffered far more dramatic losses. Ethereum plummeted by over 20%, trading below $2,500, and XRP, despite recent gains, experienced a sharp drop exceeding 22.1%, according to Coingecko data.

The impact extended even to the rising memecoin market, with Dogecoin falling by roughly 23%, while Pepecoin experienced an almost 26% decline.

Crypto Market Liquidation

Total liquidations across the market surpassed $2.2 billion within 24 hours, underscoring the widespread panic and resulting sell-off. The futures market was particularly hard hit, with losses exceeding $600 million, heavily concentrated in the early Asian trading hours.

Specific losses included over $150 million in XRP and DOGE futures positions, combined with an additional $138 million in other altcoin derivatives and $84 million in Ether-based futures contracts, according to CoinDesk.

The total market capitalization decline within this period exceeded $1.88 billion. Further price declines in subsequent hours saw Bitcoin reaching a low of $92,000 and ETH dipping to $2,250, total liquidations exceeding $1.81 billion, and long order liquidations exceeding $1.58 billion within the 24-hour period. A further $880 million in liquidations, including $779 million in long orders, occurred in the following 12 hours.

Trump’s Tariffs Could Start a Trade War

President Trump’s executive order imposed significant tariffs on imports from Canada and Mexico, followed by subsequent retaliatory tariffs imposed by both nations. While Trump contends these measures are necessary to protect American interests, they have triggered fears of a broader global trade war.

Mexico initiated retaliatory tariffs targeting American steel, bourbon, and dairy products, while Canada announced a 25% tariff on $30 billion worth of American imports.

On Saturday, Prime Minister Justin Trudeau addressed U.S. citizens in Ottawa, according to Reuters.

He warned, “Tariffs against Canada would jeopardize American jobs, potentially closing auto assembly plants and other manufacturing facilities, and these tariffs would increase costs for Americans, impacting grocery prices and gas costs.”

Notably, this latest development stands in stark contrast to the period following Trump’s election as the 47th US President, when cryptocurrency markets saw significant price increases.