Crypto Market Crashes as Trump’s Trade War Escalates — $1.3B Liquidated

The crypto market is experiencing a major sell-off as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP all suffer double-digit losses, triggered by fears surrounding Donald Trump’s 25% tariffs on Canada and Mexico.

By mid-morning Hong Kong time, Bitcoin had plunged 8% to $93,100, before stabilizing around $93.5K by the afternoon. Ethereum took a massive hit, dropping nearly 20% to below $2,500, while Solana (SOL) slid 7% to $193.

XRP was the biggest casualty, crashing 23% to just $2.

The CoinDesk 20 Index (CD20), which tracks the largest digital assets, was down nearly 17%. Even Trump’s own memecoin (TRUMP) fell 12%.

The market crash appears to stem from President Donald Trump’s aggressive trade policies, as he announced a 25% tariff on Canadian and Mexican imports.

In response, the European Union vowed to retaliate, with a Brussels spokesperson warning,

“Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.”

Meanwhile, the U.K. seems to be the only country spared, as Trump suggested a trade deal can be “worked out.”

Data from CoinGlass shows that in just the last 12 hours, over $1.3 billion in long positions were liquidated:

• $400 million in ETH longs
• $300 million in BTC longs

Despite growing backlash, Trump remains defiant, taking to Truth Social over the weekend to dismiss concerns, suggesting his critics are being funded by China.

Meanwhile, investors are scrambling as fears grow over how far this trade war could escalate — and what it could mean for global markets.

🔍 Do you think Trump’s tariffs will sink crypto further? Drop your thoughts below!