Crypto Market Plunges $500B as Trump's Tariffs Spark Selloff
1min read The cryptocurrency market experienced a significant downturn on Monday, with approximately $500 billion wiped off its total value following President Trump's announcement of new trade tariffs. Bitcoin, the leading digital currency, dropped from its recent high of $94,000 to trade around $83,700.
The market reaction came after Trump confirmed the implementation of 25% tariffs on both Canada and Mexico. These tariffs are scheduled to take effect on Tuesday. The White House also announced a 20% tariff on Chinese imports, doubling the initial 10% tariff imposed earlier.
XRP, which had recently benefited from speculation about inclusion in the US reserve, fell 17% in 24 hours. The asset's price retreated sharply after reaching nearly $3 during its previous rally. Cardano (ADA) faced even steeper losses, declining approximately 25%. The cryptocurrency's value dropped below $0.8 after surging above $1 on Sunday. Solana (SOL) joined the downward trend with a 20% decrease, moving from $177 to $135 during the selloff.
The market turbulence triggered massive liquidations across cryptocurrency exchanges. Total liquidations reached $1 billion, with $867.87 million coming from long positions. Bitcoin derivatives accounted for $310.55 million of these liquidations. Other major cryptocurrencies, including Ethereum, Solana, XRP, and Cardano, also saw substantial position closures.
The Federal Reserve Bank of Atlanta's GDPNow model now projects a 2.8% decline in gross domestic product for the first quarter of 2025, representing a stark reversal from previous estimates.
Trading volume across the crypto market reached $175.84 billion, showing a 4% decrease from the previous day. Bitcoin trading alone accounted for $72.86 billion of this activity. Ethereum suffered a 16.5% decline against the US dollar, while BNB dropped by 10.2% during the same period. Meme coins were particularly affected by the market downturn, with Dogecoin decreasing by 17.5% and newer tokens like SNEK, mog, and AI16Z seeing losses exceeding 27%.
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