Trump's Tariffs Spark Crypto Bloodbath: $2B Wiped Out in Hours

President Trump's Tariffs Trigger Historic Crypto Liquidations – ByBit CEO Warns It’s ‘A Lot More’ Than Reported

The cryptocurrency market experienced a significant downturn on Monday, with Bitcoin and Ethereum prices dropping to $92,900 and $2,400, respectively, before U.S. markets opened. This sell-off was triggered by President Donald Trump's announcement of new tariffs on Canada, Mexico, and China, which are set to take effect on Tuesday. The tariffs include a 25% import tax on most goods from Mexico and Canada, and a 10% levy on Chinese imports.

The crypto market has been volatile in recent weeks, with Bitcoin surpassing the six-figure mark for the first time. However, this rally left the market vulnerable to sharp corrections, especially as traders looked to lock in profits at psychological resistance levels. The inability to sustain momentum at higher price levels triggered a chain reaction of selling across the market.

The Crypto Fear and Greed Index was at 39 (Fear) at press time, a stark contrast from the Neutral 55 recorded last week. The rapid shift in sentiment suggests that investors are becoming increasingly risk-averse amid broader market uncertainties. Fear-driven market conditions have historically led to prolonged downturns as traders rush to protect capital, exacerbating the selling pressure.

The crypto market experienced an abrupt downturn, with Bitcoin dropping from its recent highs of over $100,000 to an intraday low of $91,995—a staggering drop of over 8%. Ethereum and other altcoins followed suit, with billions wiped out in minutes. According to liquidation data, over $2 billion worth of positions were liquidated in the last 24 hours, with Ethereum alone accounting for $600 million in forced liquidations. The sharp price declines triggered cascading stop-loss orders, intensifying the selling pressure.

ByBit CEO Ben Zhou warned that the real market liquidation in crypto could be well higher than the stated figures. He estimated that the actual figure might be 5X the reported volume. Zhou also revealed that Bybit liquidated $2.1 billion on 3rd Feb, suggesting that the real liquidation on that day could be well beyond $2 billion.

The crypto liquidation data is far from perfect, with experts suggesting