Bitcoin (COIN:BTCUSD) crashed on Monday morning as a wave of selling swept through the cryptocurrency market. It fell 10% to $91,695.8 before rebounding slightly to $95,137.6. This steep drop came after President Trump announced he was imposing trade tariffs on China, Canada, and Mexico. This sparked fears of a trade war which sent the markets into panic.

Ethereum (COIN:ETHUSD), the second-largest cryptocurrency, saw an even steeper drop. It fell 22.7% to $2,434.84. Ripple-linked XRP (COIN:XRPUSD) was down 17% to $2.20. The President’s memecoin, $TRUMP lost over 15% to hit a record low of $16.349.

The sell-off wiped $400 billion from the total crypto market cap, the largest liquidation event of 2025 as over $2.2 billion in leveraged positions were wiped out in just a few hours.

President Trump’s sweeping new tariffs, of 25% on imports from Canada and Mexico and 10% from China, prompted retaliatory measures from the countries. Investors’ fears of a trade war sent shockwaves through riskier asset classes such as cryptocurrency.

The market reaction was amplified by crypto’s close ties to Trump’s presidency, as he openly supports digital assets.