As trading opened in Asia, the cryptocurrency market experienced a significant downturn, with Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP all suffering sharp declines. By mid-morning in Hong Kong, Bitcoin had fallen 8%, dropping below $93,100, according to CoinDesk Indices data. Later in the afternoon, Bitcoin managed to stabilize around $93.9K, but other major assets continued to show weakness.
Ether saw a steep 20% drop, slipping below $2,500, while Solana lost 7%, trading at $193. XRP was the hardest hit, plunging 23% to $2. The CoinDesk 20 Index, which tracks the performance of the largest cryptocurrencies, was down almost 17%, with Trump’s memecoin (TRUMP) also experiencing a 12% drop.
The sell-off coincided with escalating tensions surrounding President Trump’s decision to impose a 25% tariff on goods from Canada and Mexico. This trade dispute has sparked fears of a global economic slowdown, weighing on investor sentiment. The market volatility also extended to World Liberty Financial (WLFI), a crypto project tied to Trump’s family, which saw a 20% drop in its January investments, as reported by SpotOnChain.
A wave of market skepticism emerged as critics, including the Wall Street Journal editorial board, labeled the trade war as “the Dumbest Trade War in History.” The European Union has vowed to respond firmly to any tariffs that impact its member states, citing concerns about inflation and economic disruption. In contrast, the U.K. has been offered a potential reprieve from tariffs, with Trump suggesting a deal could be negotiated, according to the BBC.
Despite the backlash, Trump took to Truth Social over the weekend, defending his actions and accusing critics of being financially supported by China.
