Major tokens slumped more than 25% in the past 24 hours as a new wave of tariffs imposed by the U.S. on Canada and Mexico over the weekend birthed talks of a global trade war — souring sentiment for risk assets.

XRP, dogecoin (DOGE) and Cardano’s ADA fell more than 25% to reverse all of the gains since December, reaching pre-U.S. election levels from early November. Most majors are down 40-50% in the past month, data shows, making it one of the steepest dives in recent years. Overall market capitalization fell 12%, the worst fall in over a year, while the broad-based CoinDesk 20 (CD20) lost 10%. Bitcoin (BTC) dropped 6%.

Futures markets reflected these losses with traders of ether (ETH)-tracked products losing over $600 million in the past 24 hours, majorly in early Asian hours. XRP and DOGE bets lost a cumulative $150 million, altcoin-tracked products lost $138 million and ether-tracked futures lost $84 million.

Total liquidations crossed $2.2 billion, the highest this year and among the biggest such levels in the past year. The largest single liquidation order happened on Binance, a tether-margined ETH trade valued at $25 million.Some traders cautioned of further losses as the week progressed.“While BTC has fallen over 8% over the weekend it was Ethereum that shocked the market with a straight 20% decline and it’s behaving like an altcoin on the downside without the benefit of long-term institutional inflows and a lack of near-term catalysts,” Augustine Fan, head of insights at SignalPlus, told CoinDesk in a Telegram message.

“Massive long futures liquidation was observed over the weekend with over 2 billion in futures stop outs over the past 24 hours, the sharpest liquidation event in crypto history. Markets are likely to be in a full risk off mode as we await the US equity market open,” Fan added.

Liquidation happens when a trader has insufficient funds to keep a leveraged trade open. The crypto market’s high volatility means liquidations are a common occurrence, although major events such as Monday’s can provide actionable cues for further market sentiment or positioning.

The market correction stems from a trade war that U.S. President Donald Trump has seemingly ignited with 25% tariffs being placed on Canada and Mexico. The move has caused immediate disruptions in North American trade relations, with both countries threatening retaliatory tariffs.

Financial markets are concerned about the potential for increased costs on goods, impacting industries from automotive to agriculture. The interconnected economies of these nations suggest that this tariff imposition could lead to a broader economic slowdown, threatening jobs and raising costs for consumers.