Donald Trump continues to crash the crypto market

The cryptocurrency market suffered the largest liquidation in history after a sharp drop in prices on February 3, 2025. This happened against the backdrop of Donald Trump’s statements about the introduction of aggressive duties on imports from Canada, Mexico, and China.

Major losses in the market:

• The market capitalization fell by 11.7% from $ 3.58 trillion to $ 3.16 trillion.
• Bitcoin BTC $96,492.86 Bitcoin -1.79% Market capitalization $1.91 trillion VOL. 24 hours $2.08 billion dropped to $ 91,281, and later regained ground to $ 98,500.
• Ethereum ETH $2,773.86 Bridged Ether (StarkGate) 1.75% Market capitalization $0.24 billion VOL. 24 hours $1.88 billion fell below $ 2,400, then stabilized at $ 2,600.
• XRP $2.59 XRP -1.53% Market capitalization $149.67 billion VOL. 24 hours $0.41 billion lost over 20%, but rose to $ 2.5.
• Altcoins suffered serious losses: ADA $0.77 Cardano -2.32% Market capitalization $27.8 billion VOL. 24 hours $95.98 million (-30%), AVAX $25.69 Binance-Peg Avalanche 0.98% Market capitalization $51.23 million VOL. 24 hours $72.17 million (-25%), DOGE $0.03 Department Of Government Efficiency -2.85% Market capitalization $30.79 million VOL. 24 hours $0.24 billion (-24%), LINK $17.83 Chainlink -2.35% Market capitalization $11.37 billion VOL. 24 hours $60.44 million (-23%).
• Liquidations in the market exceeded $ 2.27 billion, according to CoinGlass, although ByBit co-founder Ben Zhou said the real amount could be as high as $ 8 billion.

Market reaction and macroeconomic implications:

• Economists believe that the duties will seriously hit the US stock market and may lead to a further drop in cryptocurrencies.
• Canada and Mexico are already preparing retaliatory sanctions, which could increase global trade tensions.
• Bitcoin’s dominance rose to 64%, but then fell to 61.7% as investors reallocated assets.

Analysts expect the market situation to remain volatile in the coming days, and the trend may change depending on news about US trade policy.