$2B Liquidations: US Tariffs Shake the Crypto Market

In early February 2025, the cryptocurrency market experienced a major shock when the United States announced 25% tariffs on Canadian and Mexican goods, along with a 10% rate on Chinese imports. A total of $2B in liquidated positions occurred within less than 24 hours. Investors rushed to exit trades, fearing a possible escalation of global trade conflicts.

Digital assets’ market cap dropped from 3.6 trillion rub to 3.1 trillion rub within days, while Bitcoin shed 4% of its price. Analysts note that Ethereum tumbled by about 17%, and numerous other tokens also took hits. Market participants indicate these abrupt swings stem from panic and a shift of capital to safer instruments.

Experts emphasize that steep tariffs add uncertainty, prompting traders to flee from high-risk positions. Many mining-centric stocks, including Riot and Marathon, declined in a 5–8% range. Although short-lived buy spikes appeared, commentators suggest full recovery may hinge on more stable global trade dynamics.