The crypto markets faced a severe downturn as major tokens plunged over 25% in the past 24 hours, reversing gains made since December. The sell-off was triggered by fresh U.S. tariffs on Canada and Mexico, escalating fears of a global trade war.

XRP, DOGE, and ADA Wipe Out Gains

XRP, Dogecoin (DOGE), and Cardano’s ADA led the decline, each dropping over 25% to levels last seen before the U.S. elections in November. Data shows that most major cryptocurrencies have lost between 40-50% in the past month, marking one of the sharpest declines in recent years.

Bitcoin (BTC) also suffered, dropping 6%, while the broader market lost over 12% of its total capitalization. The CoinDesk 20 (CD20), which tracks the top digital assets, fell by 10%.

Massive Liquidations Exceed $2.2 Billion

Futures markets reflected the downturn, with traders facing significant losses. Over $600 million in Ether (ETH)-tracked products were liquidated, alongside $150 million in XRP and DOGE positions. Altcoin futures saw a combined $138 million wiped out, while ETH futures lost an additional $84 million.

Total liquidations crossed $2.2 billion, making it the highest this year and one of the biggest liquidation events in crypto history. The largest single liquidation occurred on Binance, involving a $25 million tether-margined ETH trade.

Market Sentiment Turns Bearish

The sharp decline has sparked concerns of further losses as the week progresses. Augustine Fan, Head of Insights at SignalPlus, noted that Ethereum’s 20% drop over the weekend was particularly alarming.

“ETH is behaving like an altcoin on the downside, lacking the long-term institutional inflows and short-term catalysts that could provide support,” Fan stated.

Analysts warn that markets are likely to remain in “risk-off” mode as global investors await Wall Street’s reaction to the economic uncertainty.

U.S. Tariffs Fuel Economic Anxiety

The crypto crash coincides with the U.S. government imposing a 25% tariff on goods from Canada and Mexico. The move has disrupted North American trade relations, with both nations threatening countermeasures.

Traditional financial markets are also showing signs of stress, as investors fear higher costs on goods, potential job losses, and economic slowdowns. The tariff imposition has raised concerns that the economic strain could spill over into the crypto market, prolonging the downturn.

As uncertainty looms, traders are bracing for continued volatility in the coming weeks.