Bitcoin and altcoins started the day with sharp declines as Asian markets grapple with the potential economic impact of U.S. President Donald Trump’s new trade war measures.
Bitcoin, which fell to $91,200, managed to rise above $94,000 by press time.
The Sharp Drop Hits Altcoins Harder
Major digital assets including Bitcoin (BTC), Ethereum (ETH), Solana, and XRP have faced significant sell-offs as traders assess global economic risks. Altcoins in general have seen a 20 percent collapse in the past 24 hours.
- BTC fell 8% in early trading hours in Asia to around $91,200 before making a slight recovery to $94,000 by afternoon in Hong Kong.
- ETH took a harder hit, falling to $2,100 levels.
- While SOL was dropping to $177, XRP fell by 27% to $1.70.
The decline dwarfed even the sharp downturn during the Covid pandemic, and experts say it could be the biggest decline in history.
Trump’s Trade War Sparks Crypto Market Selloff
The sharp correction came after Trump announced that he would impose 25% tariffs on goods from Canada and Mexico, reigniting fears of a global trade war. The move triggered widespread anxiety among investors not only in traditional markets but also in the crypto sector.
World Liberty Financial (WLFI), a crypto project with ties to Trump’s family, saw its January crypto investments drop by 20%, according to SpotOnChain data.
Massive Liquidations Increase Market Volatility
Data from CoinGlass shows that over $2.1 billion worth of liquidations occurred in the last 24 hours.
- $400 million was wiped out in long ETH positions alone.
- Additionally, $300 million was liquidated in long BTC positions.
This wave of liquidation added to the downward pressure, further strengthening the already fragile market sentiment.
*This is not investment advice.
Continue Reading: Historic Crypto Market Drop: Bitcoin and Altcoins Dropped Sharply, Here Are the Details
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