Crypto markets suffered a brutal sell-off, with over $1 billion in liquidations within 24 hours as fears of a trade war rattled investors, according to data from CoinGlass. The downturn, driven by sudden tariff hikes, wiped out recent gains and left long-position traders reeling.

More than 87% of liquidated positions were longs, as crypto prices reversed sharply. Bitcoin plunged to around $82,000 after hitting $93,000 just a day earlier, while Ether and Solana saw even steeper declines of 12% and 20%, respectively. The sell-off mirrored broader market turmoil after US President Donald Trump announced a 25% tariff on Canada and Mexico on March 4, sending the S&P 500 down nearly 2% in morning trading.

The crash caught many off guard, as just days prior, traders had turned bullish following Trump’s March 2 proposal to establish a US crypto reserve. The plan, which included Bitcoin, Ether, XRP, and Cardano, had fueled optimism and driven prices higher.

Bitcoin traders took the hardest hit, with over $300 million in liquidations, while SOL, XRP, and ADA positions collectively lost more than $150 million. The sharp downturn threatens to erase the so-called “Trump effect,” which had pushed Bitcoin from $69,374 on Election Day to an all-time high of $108,786 by January.

Analysts warn that macroeconomic pressures—such as trade disputes and economic slowdown—could overshadow positive industry developments, including the SEC’s recent dismissal of crypto lawsuits. The latest shakeout highlights the fragile balance between political shifts and crypto market sentiment.