Crypto Market Bloodbath: Ether, Solana, XRP and Meme Coins Plunge Amid Trade War Fears
The cryptocurrency market experienced a brutal crash this week, with Ether (ETH), Solana (SOL), XRP, and even meme coins taking major hits, as global market concerns, specifically related to the U.S.-imposed tariffs, sparked panic. This dramatic downturn has sent shockwaves through both the US and Asian markets, raising fears of economic instability that caused widespread selling.
Ether Faces Its Steepest Drop in Four Years
Ether, the second-largest cryptocurrency by market capitalization, suffered its steepest fall in nearly four years. On Monday, Ether dropped 26.53%, falling to $2,135, significantly below its recent highs. The crash was reminiscent of its dramatic decline in May 2021, but the current drop has eclipsed that event in both scale and speed. As a result, Ether holders were hit hardest, with $400 million in long positions getting liquidated, according to Coinglass data.
Solana, XRP, and Other Major Tokens Also Take a Hit
It wasn’t just Ether that was affected; other major cryptos also saw massive losses. Bitcoin (BTC) took an 8% dip, falling to $92,000, with Solana (SOL) losing 13% and trading at $184. Meanwhile, XRP crashed by 28%, plummeting to $1.82, well below its recent $3 high from just a month ago.
The CoinDesk 20 (CD20), an index tracking the top 20 cryptocurrencies, also plummeted nearly 21%, reflecting widespread losses across the board. Even meme coins, including Trump’s memecoin (TRUMP), which had gained some early hype post-election, lost 12% of their value.
Crypto Market Liquidations Soar Amid Sell-Off
The sell-off was so intense that $1.3 billion in long positions were liquidated within just 12 hours, with Ether and Bitcoin traders bearing the brunt of the losses. $400 million was wiped out from Ether positions alone, while Bitcoin saw $300 million in liquidations.
On the DeFi chain, the lending liquidation volume reached $310 million, its highest point since August 2024. The ETH collateral liquidation volume alone amounted to $181 million, with wBTC suffering a 12.1% drop, losing around $8 million.
Trade War Concerns Trigger Crypto Market Panic
The crash was triggered by the announcement over the weekend from Donald Trump—the self-proclaimed “crypto president” — that the U.S. would impose 25% tariffs on imports from Canada and Mexico. This unexpected decision raised concerns among traders about global economic instability, leading to a mass exodus from riskier assets like cryptocurrencies.
Many traders feared that the tariff escalation was a sign of worsening economic conditions, prompting them to liquidate their positions. Trump’s comments on Truth Social, defending his tariff stance, did little to calm market sentiment.
Trump Family Crypto Project Suffers Losses
Interestingly, Spot on Chain revealed that Trump’s family crypto project, World Liberty, has lost about $51.7 million (around 21%) from its $242.77 million crypto investments since the tariff announcement. Among the hardest-hit assets are Ether and WBTC, which collectively accounted for most of the losses.
Meme Coins Show Volatility, Too
In addition to major coins like Ether and XRP, meme coins also demonstrated the erratic volatility that has plagued the broader market. Dogecoin, famously backed by Elon Musk, lost 14% on Monday, continuing its downward spiral. Trump memecoin similarly saw a 12% loss as its early hype faded.
Cardano, Avalanche, and Chainlink Struggle Amid Market Turmoil
In addition to the heavy losses in major assets, Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) all posted double-digit losses, each dropping by more than 10% as the entire market faced severe sell-offs.
Crypto Market Faces Uncertainty Amid Global Economic Fears
The sudden and sharp decline across major cryptocurrencies has left investors wondering whether this is a temporary correction or the beginning of a prolonged downturn. Amid the concerns surrounding the escalating trade war and potential global economic instability, the crypto market remains highly volatile.
As the market continues to react to global geopolitical events, crypto investors are being forced to consider how much external factors, such as tariffs and global trade tensions, will influence the future of digital assets.
