Crypto markets lose $400B amid Trump’s tariff impact

The cryptocurrency market suffered a dramatic $400 billion selloff within 24 hours following the announcement of new trade tariffs by U.S. President Donald Trump.

The market capitalisation plunged 12%, falling to $3.1 trillion, its lowest level since mid-November.

This selloff, which began during Monday’s Asian trading session, also triggered the liquidation of over 700,000 traders, resulting in $2.2 billion in losses, according to Coinglass data.

Will Clemente, co-founder of Reflexivity Research, described it as “the biggest liquidation event in the history of crypto.”

Bitcoin (CRYPTO:BTC) dropped 7.5%, hitting an intraday low of $91,300 before recovering slightly to $93,000.

However, altcoins bore the brunt of the crash, with Ethereum (CRYPTO:ETH) plunging 25% to below $2,400—its lowest level since October—and Ripple’s XRP losing 26% in hours to fall below $2.

Other major tokens also faced steep declines: Solana (CRYPTO:SOL) fell 14% to $180, Binance Coin (CRYPTO:BNB) dropped 16% to $550, and Dogecoin (CRYPTO:DOGE) lost 24%, trading at $0.22.

Cardano (CRYPTO:ADA), Chainlink (CRYPTO:LINK), and Avalanche (CRYPTO:AVAX) saw losses of nearly 30%, 23%, and 25%, respectively.

Economist Alex Krüger noted that Bitcoin is seen as a risk asset.

“Tariffs this aggressive are very negative for risk assets. The economy will take a hit,” he stated.

Caroline Bowler, CEO of BTC Markets, added that concerns about trade wars and stagflation are cascading across cryptocurrencies.

The tariffs—25% on imports from Canada and Mexico and additional levies on China—have rattled global markets, with U.S. stock futures and Asian indices also taking significant hits.

Analysts remain divided on whether this marks a temporary shakeout or the beginning of prolonged market instability.

For now, the crypto market braces for further volatility as geopolitical tensions continue to weigh heavily on investor sentiment.