The cryptocurrency market took a beating on Tuesday, with top tokens such as Bitcoin, Ethereum, Cardano, Solana, and others falling by up to 28% in the last 24 hours. Tokens faced intense selling pressure as the crypto market experienced massive liquidation and Trump's tariff war.
According to some reports, the crypto market saw $120 million worth of assets liquidated in just 60 minutes, indicating increased volatility and potential bearish sentiment in the market, which could impact trading strategies as traders reconsider their risk management approaches.
All of the gains BTC and crypto made the day before were completely washed out, resulting in more than $1 billion in liquidations, as ETH and other crypto also fell sharply, according to CoinSwitch Markets Desk. "However, this is not the only market which is acting brutal towards its investors - with Trump confirming tariffs on China and Mexico," according to the report.
Trump's confirmation of tariffs on Canada and Mexico caused a pullback in the crypto markets, and the broader market saw some profit-taking as economic uncertainty increased, according to Alankar Saxena, Co-founder and CTO at Mudrex, who advised investors to remain cautious amid the volatility as bears remained active in the markets.
According to Coinmarketcap data, Cardano led the loser's pack, falling more than 28% to $0.7685 from its 24-hour high of $1.07. Its total market capitalization dropped $28 billion, while volumes fell 30%. Solana fell more than 21% to $134.02 from its high of $170.13. Mcap fell below $70 billion, and volumes fell by 24% in the last 24 hours.
According to Pankaj Balani, CEO and Co-founder of Delta Exchange, the liquidation of leveraged longs that entered the market following President Trump's Sunday announcement exacerbated the downturn. More than $1 billion in long positions were liquidated yesterday. He stated that there are currently two opposing forces at work in the cryptocurrency space.
Ripple's native token XRP fell nearly 21% to $2.23 on Tuesday, bringing its total valuation below $130. It lost one-fourth of its volumes in the last 24 hours. Dogecoin, backed by Elon Musk, fell 18 percent to $0.1876 in the early hours, with a market capitalization of less than $30 billion. According to Coinmarketcap data, its trading volumes have declined by 21%.
Bitcoin, the largest and oldest crypto token, fell about 12% to $82,467.24 from the previous day's high of $93,664.05. Bitcoin's total market valuation fell by $1.6 trillion, but its volumes increased by 14 percent. Ethereum, its biggest peer, fell more than 18 percent to $2,004.21 from $2,453.65. Mcap barely held the $250 billion mark, with volumes falling 9% in the last 24 hours.
According to the data, the total global crypto marketcap stood at $2.75 trillion, down 11.20 percent from the previous day. The total crypto market volume over the last 24 hours is $185.32 billion, representing a 1.55 percent decrease. Bitcoin's dominance is currently 60.17%, up 0.46 percent from the previous day.
The recent drop in Bitcoin and other cryptocurrency prices appears to be a knee-jerk reaction to the US's impending tariff decision against China, Mexico, and Canada. According to Raj Karkara, COO of ZebPay, similar reactions have occurred in other financial markets as a result of this decision. "However, it is important to note that short-term volatility provides opportunities too, not just risks," said the economist.
On the contrary, crypto tokens skyrocketed on Monday after US President Donald Trump announced a US Crypto Reserve, which is expected to include altcoins such as Cardano, Ripple, and Solana, in addition to the larger tokens Bitcoin and Ethereum. These stocks had risen by 75% in the previous session.
The crypto market experienced extreme volatility following former President Donald Trump's announcement of a US Crypto Strategic Reserve, which initially drove Bitcoin, Ethereum, and other major tokens higher, according to Avinash Shekhar, Co-Founder & CEO of Pi42.
