Crypto Market Faces Unprecedented Liquidations as $2.3 Billion Is Wiped Out in 24 Hours
The cryptocurrency market experienced record-breaking liquidations amounting to $2.3 billion within the past 24 hours, marking an unprecedented event in the sector. The sharp decline follows U.S. President Donald Trump’s announcement regarding new tariffs on imports, which has fueled economic uncertainty and triggered a significant sell-off across digital assets.
Impact of New U.S. Tariffs:
The White House has unveiled plans to impose a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Canadian energy and Chinese goods. These measures are set to take effect on Tuesday, February 4, 2025. In response, Canada has announced a 25% counter-tariff, while Mexico and China are expected to consider similar actions.
Financial analysts warn that the newly imposed tariffs could heighten inflation risks, prompting the Federal Reserve to maintain high interest rates for an extended period. According to Min Jung, an analyst at Presto Research, the trade policy shifts are exerting downward pressure on risk assets, including cryptocurrencies.
With heightened economic instability and increased liquidation volumes, investors are closely watching market trends to assess further implications on digital currencies.
