"Crypto Bloodbath: $609M in Ether Liquidations as Trade War Fears Surge"

Ether Liquidations Exceed $609 Million as Geopolitical Tensions Impact Cryptocurrency Markets

Geopolitical tensions, particularly the escalating trade war between the U.S. and key trading partners, have sent shockwaves through the cryptocurrency market. The recent imposition of tariffs on imports from Canada, Mexico, and China by President Trump has sparked fears of a global trade war, leading to a massive sell-off in cryptocurrencies.

Ethereum (ETH) and other major cryptocurrencies, such as XRP and Solana, have experienced significant declines in the past 24 hours. ETH/USD and XRP/USD dropped more than 17%, while Solana declined by 9% after losing double-digit percentages within an hour of Trump's announcement of fresh tariffs. Bitcoin (BitfinexUSD) price was down 4.1% at the time of writing.

This decline wiped out all market gains made since December, bringing prices back to where they were before the U.S. election. Total liquidations exceeded $2.2 billion, the largest such event this year and among the biggest in crypto history. Ethereum led the liquidation wave, with combined long and short liquidations exceeding $609.9 million.

More than 730,000 traders were affected by the mass sell-offs, as uncertainty gripped the market. The single largest liquidation order occurred on Binance, where a tether-margined ETH trade worth $25.6 million was closed. Futures markets were hit hard as well, with traders of ether-linked products losing over $600 million in the past 24 hours. Combined losses on XRP and DOGE futures totaled $150 million, while altcoin-tracked products shed $138 million. Ether-tracked futures lost $84 million.

The sell-off comes amid escalating trade tensions sparked by U.S. President Donald Trump's decision to impose steep tariffs on Canada and Mexico. The move disrupted North American trade relations, with both countries threatening retaliatory measures. It drew sharp criticism from economists and global leaders, with The Wall Street Journal editorial board labeling it the "Dumbest Trade War in History."

Financial markets are bracing for economic repercussions, as higher tariffs could increase costs in sectors such as