The cryptocurrency market is experiencing significant turbulence today, largely due to geopolitical tensions sparked by U.S. President Donald Trump's imposition of tariffs on imports from Canada, Mexico, and China. This move has triggered a risk-off sentiment across financial markets, leading to a sharp sell-off in cryptocurrencies. Ethereum (ETH), in particular, has been hit hard, with its price plummeting nearly 20% as traders react to the heightened uncertainty. The tariffs, which took effect on February 1, have added complexity to the ongoing trade wars, causing widespread concern among investors.
The market's reaction has been swift and severe, with data from CoinGlass revealing that nearly $1.3 billion in long positions have been liquidated in the past 12 hours, including around $400 million in long ether positions. This liquidation reflects the panic and selling pressure that have gripped the market, as traders rush to offload their assets amid fears of further declines. The overall global crypto market cap has also suffered, dropping nearly 12% as investors reassess their risk exposure in light of the new trade policies.
Ethereum's price has fallen by 13.87% today, currently trading at $2,471.36, after reaching a high of $2,869.29 earlier in the day.