Crypto Market Crash: XRP, Dogecoin, and Cardano Plunge 25% Amid U.S. Tariff Shock

The cryptocurrency market faced a brutal sell-off, with major tokens such as XRP, Dogecoin (DOGE), and Cardano (ADA) plummeting more than 25% in the past 24 hours. The slump erased all gains since December, dragging prices back to pre-U.S. election levels from early November. The crash comes as global markets reel from a new wave of tariffs imposed by the United States on Canada and Mexico, sparking fears of an escalating trade war.

Market Meltdown: A Historic Liquidation Event

The sell-off resulted in one of the steepest declines in recent years, with most major altcoins sinking between 40-50% over the past month. The overall crypto market capitalization took a staggering 12% hit, marking its worst fall in over a year. The CoinDesk 20 (CD20) index lost 10%, while Bitcoin (BTC) saw a relatively smaller decline of 6%.

Futures markets mirrored the downturn, with traders facing massive liquidations. Ether (ETH)-tracked products recorded losses exceeding $600 million, while XRP and DOGE traders collectively lost $150 million. In total, liquidations surpassed $2.2 billion, the highest recorded this year and one of the largest in the past twelve months. Binance witnessed the biggest single liquidation, a $25 million tether-margined ETH trade.

U.S. Tariffs Fuel Panic Selling

The primary catalyst behind this sudden market collapse is the latest trade policy shift by the U.S. government. Over the weekend, President Donald Trump announced a 25% tariff on imports from Canada and Mexico. The move sent shockwaves through financial markets, raising concerns over a prolonged global trade war.

The ripple effect of these tariffs is already being felt across industries, particularly in automotive and agriculture, as increased costs could lead to job losses and higher prices for consumers. As uncertainty grips the financial sector, investors have shifted to a risk-off approach, exacerbating crypto’s downfall.

What’s Next for Crypto Markets?

With markets rattled, traders are bracing for further losses as the week unfolds. Augustine Fan, head of insights at SignalPlus, warned that the market could remain in risk-off mode until U.S. equity markets open. “Massive long futures liquidation was observed over the weekend with over $2 billion in futures stop-outs in the past 24 hours, marking one of the sharpest liquidation events in crypto history,” Fan stated.

Adding to concerns, Ethereum’s 20% decline has stunned investors, with some suggesting the asset is behaving more like an altcoin rather than a major institutional asset. The lack of strong institutional inflows and near-term catalysts has left Ethereum vulnerable to extreme price swings.

Final Thoughts

The current correction highlights the volatile nature of the cryptocurrency market and its sensitivity to macroeconomic factors. While some traders view this as a buying opportunity, others remain cautious, anticipating further downside pressure. As the U.S. trade war narrative unfolds, crypto markets could see continued turbulence in the days ahead. Investors should proceed with caution and closely monitor global economic developments for potential market shifts.

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