The cryptocurrency market experienced a staggering $1.42 billion in liquidations over the past 24 hours, driven by a sharp decline in major digital assets following President Donald Trump‘s tariff policies and a broader market sell-off.

What Happened: Bitcoin BTC/USD fell 7.5%, currently trading at around $76,650, while Ethereum ETH/USD dropped 17%, XRP XRP/USD 15%, and Solana SOL/USD and Dogecoin DOGE/USD both shed 16%. BNB BNB/USD also lost 8% during the sell-off.

The liquidations, which saw $1.22 billion in long positions and $203.54 million in short positions wiped out, were triggered by a combination of macroeconomic pressures and Trump’s trade policies, according to Coinglass data.

Last week, Trump imposed tariffs on several nations, increasing the total levy on China to 54%, prompting retaliatory measures, including a 34% tariff hike from China.

This escalation has fueled fears of a deepening trade war, with futures tied to the Nasdaq index hitting their lowest levels since January 2024.

Also Read: Ripple Warns: This Country Is Falling Behind In The Crypto Race

What Experts Say: In a note sent to Benzinga, Alex Kuptsikevich, chief market analyst at FxPro, noted the market’s precarious state, suggesting that while a rebound is possible, significant hurdles remain.

“At these levels, the market looks emotionally oversold, which increases the chances of a bounce,” Kuptsikevich said, but cautioned, “For a rebound to be a reversal, fundamental changes are required, and these are not yet in place.”

He also highlighted the market’s sentiment, stating, “Crypto market sentiment has returned to the extreme fear zone of 23, which is significantly higher than what we see in equities.”

Trump, in a Truth Social post early Monday, reiterated his call for Federal Reserve rate cuts, arguing that economic conditions support such a move.

“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” Trump wrote, adding that tariffs are bringing in “Billions of Dollars a week” from countries he accuses of trade abuses.

He also criticized China, noting, “They’ve made enough, for decades, taking advantage of the Good OL’ USA!” Over the weekend, Trump doubled down, stating he would not negotiate with China until the trade deficit issue is resolved, further stoking tensions.

The extreme fear sentiment, as noted by Kuptsikevich, contrasts with equities, suggesting a more organized sell-off in crypto that could pose longer-term risks.

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