The cryptocurrency market started the day with sharp declines amid concerns over a new trade war.
Sharp Drop Hits Cryptocurrency Market
Major digital assets like Bitcoin, Ethereum, Solana, and XRP faced significant sell-offs. Altcoins in general saw a 20% collapse in the past 24 hours. Bitcoin fell by 8% to $91,200, then recovered to $94,000. Ethereum hit $2,100 levels. Solana dropped to $177, while XRP fell 27% to $1.70. This decline may be the biggest in history.
Trump's Trade War Impact
The sharp correction followed Trump's announcement of 25% tariffs on goods from Canada and Mexico, sparking investor anxiety in both traditional and crypto markets. World Liberty Financial (WLFI), a project linked to Trump’s family, saw its crypto investments drop by 20% according to SpotOnChain.
Mass Liquidations and Market Volatility
CoinGlass data shows over $2.1 billion worth of liquidations in the past 24 hours. $400 million was wiped out in long ETH positions alone, and $300 million in long BTC positions. These liquidations added to the downward pressure, further weakening market sentiment.
Concerns over the trade war and mass liquidations continue to pressure cryptocurrency markets, potentially affecting their dynamics in the near future.
