Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP Plummet as Cryptocurrency Market Takes a Massive Hit

The cryptocurrency market has taken a massive hit as Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP all plummeted in the early hours of Asia's trading week.

Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP all took a hit early on in the week as traders adjusted to the unexpected geopolitical tensions.

Bitcoin experienced an 8% drop early on, trading below $93,100 by mid-morning Hong Kong time. Later in the afternoon, BTC appeared to stabilize slightly, hovering around $93,500.

Despite the recovery, the cryptocurrency was still significantly down from its previous levels, reflecting the market-wide volatility spurred by the latest economic developments.

In tandem with Bitcoin’s decline, Ether (ETH) saw a steep drop of nearly 20%, sinking below $2,500.

Meanwhile, Solana (SOL) lost 7%, trading at $193. The most dramatic decline came from XRP, which plunged by 23% and was trading at just $2.

This broad market downturn led to a 17% drop in the CoinDesk 20 (CD20), an index tracking the top 20 cryptocurrencies, and even Trump’s memecoin (TRUMP), which fell 12%.

The volatility didn’t spare World Liberty Financial (WLFI), a crypto project backed by Donald Trump’s family.

Their $242.77 million crypto investment, made between January 19 and 31, has already taken a 20% hit, losing over $51.7 million.

Among the hardest-hit assets were Ether (down $36.7 million), WBTC (down $8 million), and ENA (down $2.05 million).

As the sell-off continued, data from CoinGlass revealed that nearly $1.3 billion in long positions were liquidated within just 12 hours.

The most significant liquidations occurred in Ether, which saw $400 million wiped out, followed by Bitcoin, with $300 million in positions liquidated.

The market correction comes in the wake of a shocking announcement from U.S. President Donald Trump, who imposed 25% tariffs on imports from Canada and Mexico.

Many market participants saw this as a sign of a new trade war, igniting fears of economic disruption and inflation. Critics, including the editorial board of the Wall Street Journal, have slammed Trump’s tariffs, calling it “the Dumbest Trade War in History.”

The announcement has already caused ripples across global markets, with Brussels indicating that the European Union would respond firmly to any tariffs targeting its member states.

Politico reported that EU officials believe such tariffs would “create unnecessary economic disruption and drive inflation.”

The U.K. seems to have secured an exception from the tariffs, with Trump suggesting that a deal can be “worked out,” according to BBC reports.

However, for most of the world, the new tariffs have intensified fears of an economic slowdown, spurring volatility in both traditional and digital asset markets.

In his usual controversial style, Trump responded to the backlash over the weekend via posts on Truth Social, claiming that his critics are simply being funded by China.

Despite the growing opposition to the tariffs, the crypto market seems to be bracing for more instability as traders react to the broader economic uncertainty.

As the global economic landscape shifts, cryptocurrency investors are left grappling with an unpredictable future. The crypto market’s vulnerability to geopolitical events like these serves as a reminder of how external factors can quickly send markets into turmoil.