"ETH Plunges 17% as Trade Tensions Spark Crypto Bloodbath"

Market Volatility Soars: ETH Declines Amid Trade Policy Uncertainty and Global Economic Concerns

Market volatility has surged as trade policy uncertainty and global economic concerns weigh on investor sentiment. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has declined amid the broader market downturn, with its price dropping by over 17% within the last 24 hours. The sell-off was triggered by growing geopolitical tensions and a wave of U.S. tariffs against China, Canada, and Mexico, which has led to a significant liquidation event in the crypto market, with over $2.2 billion in positions liquidated. Ethereum led the liquidation wave, with combined long and short liquidations exceeding $609.9 million. Over 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 also hit hard, 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 Investing.com OFFICIAL TRUMP Index token, a memecoin associated with U.S. President Trump, dropped 12%. Moreover, World Liberty Financial (WLFI), a crypto project backed by the Trump family, saw its January crypto investments decline 20%. 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 automotive and agriculture, leading to broader economic instability.

QCP Capital, a Singapore-based crypto trading firm, wrote in a Feb. 3 note that Treasury yields bear-flattened, with 2-year yields rising while 10-year yields fell, signaling short-term inflation concerns and “long-term trade