Crypto just had its worst day in months after Trump slapped 25% tariffs on Canada and Mexico.

Over $1 billion in leveraged positions got wiped out in record time – as if the current price action wasn’t bearish enough. 

Longs just got absolutely rekt as the market reminded everyone why you don't trade with max leverage.

Carnage By The Numbers

Bitcoin nosedived from $93K to $82K in a matter of hours – a classic case of up the stairs, down the elevator.

ETH holders watched in horror as prices tanked 12% while their stop losses triggered one after another.

SOL got absolutely demolished with a 20% drop that liquidated even the diamond hand holders.

Traditional markets weren't spared either, with the S&P 500 dumping nearly 2% as Wall Street finally realized tariffs might actually be bad for business.

The Liquidation Cascade

87% of the rekt positions were longs – yet another reminder that the market punishes over-optimism first.

Bitcoin longs took the biggest hit with $300M in liquidations as leveraged bulls got sent to the shadow realm.

SOL, XRP, and ADA traders collectively lost over $150M as altcoin positions got nuked from orbit.

The funding rates flipped negative faster than politicians flip their policy positions.

The Trump Pump Gets Dumped

So much for the "Trump effect" that carried BTC from $69K on Election Day to $108K by inauguration – Bitcoin's been in a downtrend since January 20, already dropping 26% before this latest massacre.

Turns out the "crypto-friendly president" narrative only works until actual economic policies kick in, with the market going from "Trump pump" to "Trump dump" on a dime.

The salt in the wound for many market actors is that Trump announced plans for a US crypto reserve just two days ago.

The news pumped BTC, ETH, XRP, and ADA as traders scrambled to front-run the government buying.

Altcoin holders were celebrating their bags getting name-checked by the president – that is, until the tariff announcement hit and turned the celebrations into liquidation notifications.

Macro Reality Check

Crypto's "digital gold" narrative just got tested against actual macro FUD – and it failed spectacularly.

Trade wars, interest rates, and global tensions matter more to crypto prices than most maxis want to admit – that’s the sort of stuff that gold thrives on but seems to send crypto running for the hills.

The reality of the situation is that when TradFi sneezes, crypto catches pneumonia, regardless of what the maximalists preach.

This is the harsh reality of institutional money in crypto – it comes with TradFi correlation whether we like it or not.

The Next Leg Up (Or Down) 

The market's trying to decide if this is just another dip to buy or the start of something worse – the end of the post-halving pump we were all counting on.

Smart money is keeping some dry powder ready for further dumps while the degen crowd is already buying with max leverage.

Just remember that historically, trade wars haven't exactly been bullish for risk assets – and like it or not, crypto is still a risk asset.