As Asia’s trading session began, major cryptocurrencies including Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP all experienced significant losses, reflecting the market’s uncertainty over the potential for a global trade war. By mid-morning Hong Kong time, BTC had dropped 8%, trading just above $93,100, according to CoinDesk Indices data.
As the afternoon progressed in Hong Kong, BTC appeared to stabilize near $93.9K, though it remained under pressure. Ether (ETH) saw a nearly 20% drop, falling below $2,500, while Solana (SOL) was down 7%, trading at $193. XRP was hit hardest, plummeting 23% to around $2.
The broader CoinDesk 20 Index, which tracks the largest digital assets, was down almost 17%, with Trump’s memecoin (TRUMP) falling 12%. Additionally, World Liberty Financial (WLFI), the crypto project supported by Donald Trump’s family, faced a 20% decline in its January investments, according to data from SpotOnChain.
A significant factor in the market’s downturn has been the renewed trade war sparked by U.S. President Donald Trump’s announcement of 25% tariffs on goods from Canada and Mexico. Analysts have raised concerns about the negative economic impact of these tariffs. A Wall Street Journal editorial described the move as the “Dumbest Trade War in History.”
In response, Brussels stated that the European Union would firmly challenge any tariffs imposed on its members, with Politico quoting a spokesperson warning that tariffs would lead to economic disruption and inflation.
Meanwhile, the U.K. appeared to have secured an exemption from the tariffs, with Trump stating a deal could be “worked out,” according to the BBC. Trump, undeterred by criticism, responded on Truth Social, claiming that those opposed to the tariffs were funded by China.
