Major cryptocurrencies like Bitcoin (BTC), Ether (ETH), Solana’s SOL, and XRP saw significant declines as trading began in Asia.
By mid-morning in Hong Kong, Bitcoin dropped 11%, falling below $91,000. Ether fell nearly 20%, trading at $2,500, while Solana decreased by 13% to $184. XRP experienced the largest drop, down 28% and trading at $2.
Recent data from CoinGlass revealed that around $200 billion in long positions were liquidated in just 12 hours. This included about $150 billion in long Ether positions and $50 million in long Bitcoin positions.
The market correction is linked to a trade war initiated by U.S. President Donald Trump, who imposed 25% tariffs on Canada and Mexico. Many analysts are doubtful about the advantages of these tariffs.
An editorial from the Wall Street Journal referred to it as the “Dumbest Trade War in History.” The European Union has also stated that it will respond strongly to any tariffs affecting its member states. A spokesperson for the EU mentioned that tariffs cause unnecessary economic disruption and inflation, harming all parties involved.
Interestingly, the U.K. appears to be the only country receiving a break from these tariffs.
