Bitcoin, along with Ethereum, Solana, and XRP, faced sharp declines as concerns over a potential global trade war and U.S. tariffs dampened market sentiment. Bitcoin hovered near $95K after an 8% drop, while altcoins like Ether and XRP also saw significant losses.
Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP all experienced significant declines as Asia began its trading week, with concerns over the potential for a global trade war and the impact of U.S. tariffs weighing on the market.
Chart by TradingView
By mid-morning Hong Kong time, Bitcoin was down by 8%, trading just above $93,100, according to CoinDesk Indices. It later stabilized around $95.2K in the afternoon.
Altcoins Drop
Other major assets were also hit hard, with Ether dropping nearly 20%, falling below $2,500, while Solana decreased 7% to $193. XRP saw a sharp 23% drop, trading at $2.
The CoinDesk 20, which tracks the largest digital assets, fell by almost 17%, and the TRUMP token, tied to the U.S. president’s branding, dropped 12%.
Market volatility has also affected World Liberty Financial (WLFI), a crypto project backed by Trump’s family, with its January investments declining by 20%, as per SpotOnChain data.
Liquidations were significant, with nearly $1.3 billion in long positions liquidated over the past 12 hours, including around $400 million in long Ether positions and $300 million in long Bitcoin positions, according to CoinGlass.
The market correction follows Trump’s implementation of 25% tariffs on Canada and Mexico, escalating tensions that many market observers see as a trade war. Meanwhile, the European Union warned of firm retaliation, citing potential economic disruption and inflation.
UK Is Fine: In contrast, the U.K. appears to be exempt from the tariffs, with Trump suggesting a potential deal. The President defended his actions on Truth Social, dismissing criticisms as being influenced by China.
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