Crypto Market Plunges as U.S. Tariffs Spark Global Trade War Fears

A brutal 24-hour sell-off has rocked the cryptocurrency market, with major tokens crashing over 25% following new U.S. tariffs on Canada and Mexico. The sweeping losses have wiped out months of gains, dragging XRP, Dogecoin (DOGE), and Cardano’s ADA back to pre-election levels.

Market data shows that the downturn has been particularly severe, with top tokens shedding between 40% and 50% in the past month—marking one of the sharpest declines in recent memory. The total crypto market capitalization dropped by 12% in a single day, the worst decline in over a year.

Futures traders took a heavy hit as well. More than $2.2 billion in liquidations occurred in the past 24 hours, making it one of the most significant wipeouts in the past year. Ethereum (ETH) traders bore the brunt of the losses, with over $600 million in liquidations, while XRP and DOGE bets saw a combined $150 million wiped out. The largest single liquidation order, a $25 million ETH trade, was recorded on Binance. Crypto markets are in full risk-off mode as we await the U.S. equity market open,” Fan stated.

The trigger for this turmoil? A fresh round of trade tariffs imposed by the U.S. on Canada and Mexico. The 25% tariffs have stoked fears of an all-out trade war, with both countries threatening retaliatory measures. The ripple effects extend beyond crypto, as financial markets brace for higher costs across industries from automotive to agriculture. Investors fear that these economic disruptions could lead to a broader slowdown, putting jobs and consumer prices at risk.

With uncertainty looming, traders remain on edge, bracing for potential further downside in the days ahead.