Crypto Market Crash: XRP, DOGE, and ADA Dropped More Than 25%, Reaching Pre-U.S. Early November Election Levels

It’s one of the steepest drops in recent years, with most major cryptocurrencies down 40–50% in the last month.

Major cryptocurrencies, including XRP, Dogecoin (DOGE), and Cardano’s ADA, dropped more than 25% to reach pre-U.S. early November election levels.

Solana’s SOL, Ethereum (ETH), Bitcoin (BTC), and XRP were among the major digital assets that posted heavy losses during the London trading session. Bitcoin was down 8% by mid-morning, trading above $93,100, according to data from Binance.

Traders’ woes

729,728 traders were liquidated on the day, and the total liquidations came in at $2.23 billion, marking the worst day ever recorded in the crypto market. The largest single liquidation order occurred on Binance, with an ETH/BTC value of $25.64 million.

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

Impact of Donald Trump’s tariffs

The trade war that the U.S. is currently engaged in is being cited as a cause for the market crash. 25% tariffs on Canada and Mexico, imposed by President Donald Trump, appear to have sparked the downturn. Both nations have threatened retaliatory tariffs in response, disrupting trade relations in North America.

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

While the tariffs are primarily aimed at traditional industries, the crypto industry is still affected.

Bitmain is based in Beijing, China, and Canaan is based in Hangzhou, and they produce the largest volumes of GPU (Graphics Processing Units) and ASIC (Application-Specific Integrated Circuit) miners.

Canada’s participation in Bitcoin mining on a global scale has varied over time, but the country still plays a significant role. As of September 2023, Canada generates approximately 7% of the world’s Bitcoin mining hash rate.

“Prime Minister Justin Trudeau imposed a 25% tariff on U.S. goods after stating that he would ‘not back down in standing up for Canada,'” the reports state.

Furthermore, Mexican President Claudia Sheinbaum announced retaliatory tariffs in response to Trump’s decision to impose a 25% tariff on all Mexican goods. Sheinbaum noted that while Mexico was still negotiating the dispute, the tensions between the two nations escalated into a trade war, leaving Mexico with no choice but to retaliate.

“I have instructed my Economy Minister to carry out the Plan B that we have been preparing, which includes tariff and non-tariff measures in defense of Mexico’s interests,” Sheinbaum wrote.