In the past 24 hours, 742,702 traders were liquidated, with total liquidations amounting to $2.26 billion. This followed U.S. President Donald Trump’s announcement of upcoming tariffs on imported goods, which appears to have triggered a massive sell-off of risk assets.
The largest single liquidation order occurred on Binance—ETHBTC, valued at $25.64 million. Long position liquidations accounted for approximately $1.89 billion, while short position liquidations totaled $375.09 million.
“The market sell-off was triggered by the White House’s Saturday announcement that tariffs would be imposed on Mexico, Canada, and China,” said Min Jun, a research analyst at Presto Research, in a statement to The Block.
Trump’s plan to impose a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Canadian energy and Chinese goods, is set to take effect on Tuesday. Canada has announced a counter-tariff of 25%, which will come into force on the same day. Meanwhile, Mexico and China are expected to respond similarly, with many referring to the current situation as a “trade war.”

“This has reignited inflation concerns, as additional tariffs could exert further pressure on prices, weighing on risk assets, including cryptocurrencies,” said Jun. Kronos Research CEO Hank Huang also stated that investors now fear that inflation driven by trade policy will force the Federal Reserve to maintain high interest rates longer than expected. “The continued absence of stimulus from the Federal Reserve (no QE) and high interest rates have disproportionately affected altcoins, leading to further declines,” said Rachel Lucas, a crypto analyst at BTC Markets, adding that the high concentration of long position liquidations indicates that the “overburdened” bullish sentiment is being flushed out. Analysts point out that with rising macroeconomic fears, the positive sentiment in the crypto market created after Trump’s re-election is starting to waver. This is due to the lack of specific mentions of cryptocurrencies by the US president since his inauguration, said Jun from Presto. “So far, the main headline related to cryptocurrencies has been about the accumulation of digital assets, without specific policy details,” said Jun. Further volatility in the crypto market is expected as Trump’s trade policy continues to evolve, according to Lucas from BTC Markets. “Any further escalation of tariffs or changes in Federal Reserve policy will affect market sentiment.” Cryptocurrency traders responded to the tariffs announced over the weekend by US President Donald Trump by reducing their positions in various tokens. Ether, the second-largest digital currency by market value, fell by up to 27% to $2,135 on Monday morning in Asia before paring losses, according to data. This is its largest intraday percentage drop since May 2021. Trump’s tariffs are expected to take effect on hundreds of billions of dollars worth of goods imported into the US from Canada and Mexico, and risk shaking up global trade. Trump also increased his threats to impose tariffs on the European Union. The negative market sentiment also affected other cryptocurrencies, with Bitcoin falling by nearly 6% at several points, and smaller tokens experiencing even larger losses. “Trump’s trade war is affecting the entire market,” said Carolyn Bowler, CEO of BTC Markets. “Concerns about trade wars and stagflation leading to recessions are impacting altcoins and Bitcoin.” Sharp Change The fluctuations in the crypto markets represent a sharp change from recent gains linked to Trump’s pro-crypto statements during his election campaign and after his election. The Republican signed an executive order on January 24, creating a task force expected to draft clear rules for crypto firms in the US within six months. The group is also tasked with exploring the creation of a crypto reserve. “Ethereum is more strongly affected compared to Bitcoin, Solana, and Ripple, mainly because the latter are expected to be included in the US crypto reserve as American companies,” said Jonathan Yark, senior quant trader at market operator Acheron Trading. “As a result, Ethereum’s liquidity is much less resilient and subject to increased volatility compared to its competitors.” Despite optimism about Trump’s plans, his tariff announcements over the weekend “led to strong demand for declines on Saturday and Sunday as hedges against larger global macroeconomic consequences,” said Sean McNulty, head of derivatives in the APAC region at digital trading platform FalconX. So far, Bitcoin is handling the declines better than smaller and more speculative tokens, he added. On the derivatives markets, over $1 billion of bullish positions in cryptocurrencies were liquidated early Monday morning in Asia, with Ether positions being the most affected, according to data from Coinglass. These are the largest liquidations in a single day since December 9. “The risk of a prolonged trade war with China, in addition to US allies, does not bode well for the volatile and interest rate-dependent digital asset space,” said Sean Dawson, head of research at crypto trading platform Derive.xyz. He added that Ether could find support at $1,900 to $2,000, with options pricing in a 25% chance of ETH reaching $2,000 by the end of the month. By early afternoon in Singapore, Ether was trading around $2,500, and Bitcoin at $93,000, while Ripple’s XRP was down 17% at $2.20. The total value of the crypto market fell by about $360 billion on Monday, according to data from CoinGecko, while the memecoins launched in recent weeks by Trump and his wife Melania were also affected by the sell-off – trading about 75% and 90% below their respective peaks.
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