TLDR

• Crypto market lost approximately $500 billion in value following Trump’s tariff announcements, with Bitcoin falling from $94,000 to around $83,700
• Trump confirmed 25% tariffs on Canada and Mexico, plus a 20% tariff on Chinese imports, sparking economic concerns
• XRP, Cardano (ADA), and Solana (SOL) experienced severe drops of 17%, 25%, and 20% respectively after their recent gains
• Total crypto market liquidations reached $1 billion, with $867.87 million from long positions
• Federal Reserve Bank of Atlanta’s GDPNow model projects a 2.8% decline in GDP for Q1 2025

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The cryptocurrency market experienced a severe downturn on Monday, with approximately $500 billion erased from its total value following President Trump’s announcement of new trade tariffs. Bitcoin, the leading digital currency, dropped from its recent high of $94,000 to trade around $83,700.

The market reaction came after Trump confirmed the implementation of 25% tariffs on both Canada and Mexico. These tariffs are scheduled to take effect on Tuesday.

The White House also announced a 20% tariff on Chinese imports. This represents a doubled rate from the initial 10% tariff imposed earlier.

XRP, which had recently benefited from speculation about inclusion in the US reserve, fell 17% in 24 hours. The asset’s price retreated sharply after reaching nearly $3 during its previous rally.

Cardano (ADA) faced even steeper losses, declining approximately 25%. The cryptocurrency’s value dropped below $0.8 after surging above $1 on Sunday.

Solana (SOL) joined the downward trend with a 20% decrease. Its price moved from $177 to $135 during the selloff.

The market turbulence triggered massive liquidations across cryptocurrency exchanges. Total liquidations reached $1 billion, with $867.87 million coming from long positions.

Bitcoin derivatives accounted for $310.55 million of these liquidations. Other major cryptocurrencies, including Ethereum, Solana, XRP, and Cardano, also saw substantial position closures.

The Federal Reserve Bank of Atlanta’s GDPNow model now projects a 2.8% decline in gross domestic product for the first quarter of 2025. This represents a stark reversal from previous estimates.

Market Impact

Trading volume across the crypto market reached $175.84 billion, showing a 4% decrease from the previous day. Bitcoin trading alone accounted for $72.86 billion of this activity.

Ethereum suffered a 16.5% decline against the US dollar. BNB dropped by 10.2% during the same period.

Meme coins were particularly affected by the market downturn. Dogecoin decreased by 17.5%, while newer tokens like SNEK, MOG, and AI16Z saw losses exceeding 27%.

POPCAT, TRUMP, and PNUT also recorded losses of more than 20%. These declines highlight the widespread nature of the market correction.

The cryptocurrency market’s total value now stands at $2.72 trillion, representing a 12% decrease against the US dollar. The downturn coincided with weakness in traditional financial markets.

President Trump stated that the tariffs aim to encourage domestic manufacturing: “They’re going to have to build their car plants — frankly — and other things in the United States, in which case they have no tariffs.”