Trump's Tariffs Spark $2.2B Crypto Bloodbath

Ether and altcoins have experienced a significant downturn, with double-digit losses, as U.S. President Donald Trump's new tariffs on key global partners continue to impact the market. The cryptocurrency market has seen over $2.2 billion in liquidations, with traders of ether-tracked products losing over $600 million in the past 24 hours. XRP and Dogecoin (DOGE) bets lost a cumulative $150 million, while altcoin-tracked products lost $138 million and ether-tracked futures lost $84 million.

The largest single liquidation order happened on Binance, a tether-margined ETH trade valued at $25 million. Traders have cautioned of further losses as the week progresses, with the market correction stemming from a trade war that Trump has seemingly ignited with 25% tariffs being placed on Canada and Mexico. The move has caused immediate disruptions in North American trade relations, with both countries threatening retaliatory tariffs. Financial markets are concerned about the potential for increased costs on goods, impacting industries from automotive to agriculture. The interconnected economies of these nations suggest that this tariff imposition could lead to a broader economic slowdown, threatening jobs and raising costs for consumers.

Analysts have predicted a Bitcoin surge as Trump's tariffs weaken the dollar, but the immediate impact has been a sharp sell-off across crypto assets. Over the past weekend, the market saw over $1 billion in liquidations as investors reacted to growing concerns over inflation, interest rates, and macroeconomic uncertainty. Trump's trade tariffs could drive Bitcoin prices higher in the long run by weakening the US dollar, but the short-term market reaction has been anything but positive. Following the announcement of new tariffs on Canada, China, and Mexico, cryptocurrency markets faced a sharp downturn, with Bitcoin shedding approximately 7.2% over the past week.

Data from CoinMarketCap reveals that altcoins bore the brunt of the market selloff. Ethereum (ETH) plummeted by 11.6%, Solana (SOL) suffered a 19.3% decline, and XRP (XRP) dropped by 16.6%. The immediate fear among investors is that escalating trade tensions will lead to a risk-off environment, pushing capital away from speculative assets like cryptocurrencies and into traditional safe-haven assets such