- Major cryptocurrencies including XRP, DOGE, and ADA saw losses exceeding 25% within 24 hours, triggered by new U.S. trade policies.
- Cryptocurrency market liquidations reached a historic $2.2 billion, marking the largest single-day event in 2025.
- Ethereum experienced a 20% decline, leading to over $600 million in futures trader losses.
- The market downturn stems from broader economic concerns following U.S. implementation of 25% tariffs on Canadian and Mexican goods.
- Technical analysis suggests key support levels have been breached, indicating potential further downside for major cryptocurrencies.
The cryptocurrency market faced its most severe downturn of 2025, as Dogecoin-plunge-25-as-crypto-liquidations-cross-usd2-2b-on-tariffs-led-dump”>major tokens plummeted following the U.S. announcement of new trade tariffs. The sell-off triggered unprecedented liquidations exceeding $2.2 billion, with popular cryptocurrencies like XRP, Dogecoin, and Cardano losing more than a quarter of their value.
The market turbulence intensified after the United States imposed 25% tariffs on Canada and Mexico, sparking concerns of a broader trade conflict. “Markets are likely to be in a full risk-off mode as we await the U.S. equity market open,” noted Augustine Fan, head of insights at SignalPlus, highlighting the interconnected nature of global financial markets.
Alternative cryptocurrencies bore the brunt of the selling pressure, with Ethereum suffering a 20% decline in a single trading session. The second-largest cryptocurrency by market capitalization breached critical support levels, prompting technical analysts to identify potential further downside risks. Support levels are price points where historically, buying pressure has been strong enough to prevent further declines.
The severity of the market reaction mirrors the crypto winter of 2018, though with a crucial distinction. While the 2018 crash resulted from speculation and internal market dynamics, the current downturn stems from macroeconomic factors, particularly international trade tensions.
Historical data suggests that cryptocurrency markets often experience amplified reactions to global economic events. The $2.2 billion in liquidations represents forced sales of leveraged positions, where traders borrowing funds to increase their exposure faced automatic position closures as prices declined.
Market participants are now closely monitoring trade negotiations and potential retaliatory measures from Canada and Mexico, as these developments could further influence cryptocurrency price movements. The situation underscores the growing correlation between traditional financial markets and digital assets, challenging the notion of cryptocurrencies as independent safe-haven investments.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- XRP Ledger Experiences Rare One-Hour Network Freeze, Recovers Spontaneously
- CFTC Restructures Enforcement Division, Aims to Combat Complex Fraud
- SEC Crypto Enforcement Unit Downsizes as Staff Members Face Reassignment
- White House Crypto Czar Unveils Ambitious Legislative Agenda, Sets 100-Day Timeline
- SEC Appoints Three Members to New Crypto Task Force, Signals Shift from Enforcement-Heavy Approach
