Ethereum Struggles Amid Tariff Wars: Market Liquidations Soar
Feb 10
2 min read
The cryptocurrency market is facing significant turmoil as Ethereum and other major coins experience sharp declines due to geopolitical tensions stemming from new tariffs imposed by former President Donald Trump. This has led to a wave of liquidations, with over $2.24 billion wiped from the market in just 24 hours.
Key Takeaways
Ethereum leads the market plunge with over $609.9 million in liquidations.
Trump's tariffs have sparked fears of a global trade war, impacting investor sentiment.
The crypto market is currently experiencing a state of "fear," with many investors liquidating their positions.
The Impact of Tariffs on Cryptocurrency
In early February 2025, President Trump announced tariffs of up to 25% on goods from Canada and Mexico, along with a 10% tariff on certain Chinese imports. This move has raised concerns about a potential global trade war, leading to increased costs for businesses and consumers alike. As a result, the cryptocurrency market reacted negatively, with major coins like Bitcoin and Ethereum seeing significant drops in value.
The tariffs are expected to affect U.S. companies importing goods, which will likely pass on the increased costs to consumers. This economic uncertainty has caused investors to pull back from volatile assets, including cryptocurrencies.
Market Liquidations and Investor Sentiment
The fallout from the tariff announcement has been severe, with Ethereum leading the charge in liquidations. Over 730,000 traders faced liquidations, with long traders losing approximately $1.88 billion, accounting for 84% of the total liquidations. This event has been compared to the market crashes during the COVID-19 pandemic and the FTX collapse.
Total Liquidations: $2.24 billion
Ethereum Liquidations: $609.9 million
Number of Affected Traders: 730,000
Eric Trump's Ethereum Endorsement
Amid the market chaos, Eric Trump took to social media to promote Ethereum, suggesting that now is the best time to buy. He tweeted to his followers, encouraging them to consider acquiring the cryptocurrency despite its recent underperformance. His endorsement coincided with a slight rebound in Ethereum's price, which had dropped to around $2,152 before recovering to approximately $2,879.
However, the positive sentiment from Trump's endorsement was overshadowed by the broader market trends, as fears of a trade war continued to loom.
Conclusion
The cryptocurrency market is currently navigating a turbulent landscape, with Ethereum at the forefront of the turmoil. The recent tariff announcements have not only led to significant liquidations but have also instilled a sense of fear among investors. As the situation develops, market participants will be closely monitoring the geopolitical climate and its potential impact on cryptocurrency valuations.
Investors are advised to remain cautious and conduct thorough research before making any investment decisions in this volatile environment.
Sources
Eric Trump Promotes Ethereum, Says Now is the Best Time to Buy, The Crypto Basic.
Why is crypto down today? Trump tariffs crash BTC, DOGE, Ether - Fast Company, Fast Company.
Ethereum leads crypto’s $2.24B liquidation amid tariff wars, Cointelegraph.