The crypto market faced a sharp selloff on Monday as traders reacted to US President Donald Trump’s announcement of tariffs on imports from Canada and Mexico, sparking fears of a trade war.
Ether (ETH), the second-largest cryptocurrency, tumbled by as much as 27% to $2,135 during early Asia hours, marking its largest intraday drop since May 2021. Bitcoin (BTC) dropped nearly 6%, while smaller altcoins saw even steeper losses, wiping out recent market gains fueled by Trump’s pro-crypto rhetoric.
“Trump’s tariff war is impacting the whole market,” said Caroline Bowler, CEO of BTC Markets. “Concerns about trade wars and stagflation are cascading across altcoins and Bitcoin.”
The weekend’s tariff news overshadowed optimism from Trump’s recent executive order establishing a working group to create clear US crypto regulations. Analysts suggest Ether is facing greater pressure due to expectations that Bitcoin, Solana, and Ripple may benefit from a US-led digital asset stockpile.
In derivatives markets, over $1 billion in bullish crypto positions were liquidated, with Ether hardest hit. Sean Dawson, head of research at Derive.xyz, predicted ETH could find support at $1,900-$2,000 but noted ongoing volatility linked to global trade tensions.
By early afternoon in Singapore, Ether was trading at $2,500, Bitcoin at $93,000, and XRP down 17% at $2.20. The total crypto market value fell by $360 billion, according to CoinGecko, with memecoins tied to Trump and Melania plunging 75%-90% below their peaks.