The crypto world just took a brutal hit! In the past 24 hours, the market has been in complete chaos, with over $2.2 billion in liquidations. Even the futures market wasn’t spared, seeing a massive $600 million wiped out.
So, what’s causing this sudden crash? And more importantly, what does this mean for investors? Let’s dive into the details of this crypto bloodbath.
Crypto Bloodbath: Billions Lost in Just 24 Hours
The past day has been one of the worst in recent memory for crypto traders. Almost every major cryptocurrency has plummeted, with some altcoins losing over 20% of their value.
Bitcoin, the king of crypto, saw a drop of about 6.5%, but the situation is even worse for other coins. Ethereum fell by over 20%, dropping below a key price level. XRP, which had been on a strong rally, has now sunk by more than 22%.
Memecoins Weren’t Spared Either
If you thought meme coins would escape the carnage, think again!
- Dogecoin (DOGE) – the Elon Musk-backed favorite – dropped by a whopping 23%.
- Pepe (PEPE) – another viral meme coin – crashed by nearly 26%.
Even with all the hype surrounding memecoins, they couldn’t withstand the market-wide selloff. This is one of the steepest declines the crypto market has seen in years.
Futures Market Takes a Heavy Blow
While the spot market was hit hard, the futures market suffered an even bigger shock.
In just 24 hours, over $600 million in futures positions were wiped out. The biggest losses were seen in altcoin futures, especially XRP and Dogecoin, which together lost around $150 million.
Ethereum futures also took a major hit, with traders losing over $84 million. The rapid sell-offs happened mainly during the early Asian trading hours, catching many investors off guard.
With so many positions being liquidated, it’s clear that many traders were unprepared for this level of volatility.
Why Is the Crypto Market Crashing?
So, what’s behind this sudden collapse? A major factor is US President Donald Trump’s recent tariffs on Canada and Mexico.
How Trump’s Tariffs Are Impacting Crypto
Over the weekend, Trump issued an executive order imposing steep tariffs on imports from Canada, Mexico, and China. His reasoning? To protect American industries and reduce reliance on foreign goods.
But these tariffs have sparked fears of a global trade war, leading to panic in financial markets – including crypto.
- Mexico responded with its own tariffs on American-made goods like steel, bourbon, and dairy.
- Canada is set to impose a 25% tariff on $30 billion worth of US imports.
These retaliatory measures are making investors nervous, leading to a massive selloff in risk assets like cryptocurrencies.
The Irony: Trump Once Boosted Crypto Prices
What makes this situation even more surprising is that Trump’s victory as the 47th US President initially pushed crypto prices higher.
- He promised pro-crypto regulations.
- He even set up a working group to explore crypto policies in the US.
At one point, it looked like Trump’s leadership would be a huge win for crypto investors. But now, his latest economic policies have caused a major downturn.
What Happens Next for Crypto?
With billions wiped out in just a day, many traders are wondering: Is this the start of a bigger crash, or just a temporary dip?
While it’s impossible to predict the future with certainty, here are a few key takeaways:
- Short-term volatility will likely continue. With global trade tensions rising, crypto markets could stay unpredictable.
- Altcoins are especially vulnerable. As seen in this crash, altcoins tend to drop harder than Bitcoin during market downturns.
- Long-term investors may see opportunities. While the market looks shaky now, some traders might view this as a chance to buy at lower prices.
Final Thoughts
The past 24 hours have been brutal for the crypto market. Over $2.2 billion in liquidations and a futures wipeout of $600 million show just how intense this selloff has been.
The main trigger? Trump’s new tariffs, which have fueled fears of a global trade war. While crypto once benefited from Trump’s policies, his latest moves have sent shockwaves through the market.
For now, traders should buckle up – more volatility could be on the way. Whether this is a short-term dip or the start of a bigger correction remains to be seen. But one thing’s for sure: the crypto market never stays quiet for long.
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