Bitcoin (BTC), XRP, Solana (SOL), Ethereum (ETH) Crash Sets Crypto Market Ablaze

The crypto market valuation fell by 12% for the first time in over a year.  Popular altcoins posted heavy losses during the London trading session

The cryptocurrency market experienced a significant downturn on Monday, with popular altcoins incurring heavy losses.

According to Binance data, Bitcoin dropped 8% and was trading above $93,100 at the time of writing.

Meanwhile, ether (ETH) fell 10% to the $2,600 level, and XRP dropped 11% to trade at $0.84, as noted by FTX data. Solana’s SOL token also faced substantial losses.

Data from Coinglass showed that over $2.2 billion was spent on liquidations, marking the highest total this year and among the biggest ever recorded on the platform.

For the day, 729,728 traders were liquidated, bringing the total liquidations to $2.23 billion.

Liquidation occurs when a trader does not have enough money to maintain an open leveraged trade.

The worst day ever recorded in the cryptocurrency market was on March 13, 2023, with $3.1 billion in total liquidations.

The largest single liquidation order occurred on Binance, with ETHBTC valued at $25.64 million.

Among the top 100 cryptocurrencies, ADA, DOGE, and XRP experienced a decline of more than 25%, reaching pre-U. S. election levels in early November.

Over the past month, most majors have dropped 40–50%, making it one of the steepest declines in recent memory.

The trade conflict in which the U.S. is involved seems to have led to the market sell-off.

Ethereum’s 20 percent decline surprised the crypto market, and it’s acting like an altcoin on the decline without the support of long-term institutional inflows or any short-term catalysts.

President Donald Trump’s 25 percent tariffs on Canada and Mexico sparked the fire.

The action has immediately strained trade relations in North America, prompting both countries to threaten retaliatory tariffs.

President Donald Trump’s recent tariffs on imports from China, Mexico, and Canada are expected to impact the nation’s cryptocurrency mining industries.

On January 1, 2025, the U. S declared that starting in February, a 10% tariff on Chinese goods and a 25% tariff on imports from Canada and Mexico will be implemented, as reported by the Associated Press.

Although the tariffs were mainly directed at traditional industries, the crypto industry is still impacted.

Due to their reliance on importing mining equipment, crypto miners are sensitive to changes in trade regulations or tariffs that affect these vital suppliers.

Rising import prices for mining equipment could affect operating costs for the U.S. miners who buy their equipment mostly from foreign vendors.

In Bitmain’s case, the company is headquartered in Beijing, and Canaan is based in Hangzhou. Both of them are the largest manufacturers of GPUs (Graphics Processing Units) and ASIC (Application-Specific Integrated Circuit) miners.

Canada’s share of the global hash rate has varied over time, making it a major participant in Bitcoin mining worldwide.

According to reports as of September 2023, Canada is responsible for roughly 7% of the world’s Bitcoin mining hash rate.

Prime Minister Justin Trudeau imposed a 25 percent tariff on American goods after he declared he would “not back down in standing up for Canada.

Additionally, Mexican President Claudia Sheinbaum declared retaliatory tariffs.

Firstly, in reaction to Trump’s decision to impose a 25 percent tariff on all Mexican goods.

Sheinbaum expressed interest in resolving the conflict through dialogue, but she noted that tensions between the two nations escalated into a trade war, ultimately compelling Mexico to respond in kind.

Sheinbaum wrote, “I’ve directed my economy minister to carry out the plan B we’ve been working on, which includes tariff and non-tariff measures in defense of Mexico’s interests