Crypto Liquidations Hit $864 Million Amid Sharp Market Downtrend

The cryptocurrency market faced a severe shakeup during early-Monday Asian trading hours, with 24 hour liquidations surpassing $864 million. This sudden correction followed the U.S. President Donald Trump’s announcement of new tariffs on eight European countries, sparking fears of broader market instability.

Data from Coinglass shows that long positions took the hardest hit, with $783.4 million lost, while short positions only lost $80.8 million. As the sell-off picked up quickly, it caught traders off guard who were holding long positions. 

Asset-level losses highlight Broad sell-off

Market data from Coinglass further shows that in the past 12 hours, Bitcoin led a major market shakeout, with about $228 million in liquidations, followed by Ethereum at nearly $127 million. Altcoins also took a hit, with most of the losses coming from long positions, showing that traders betting on price rises got caught off guard.

Over the full 24 hours, total liquidations jumped to $871 million, with long trades making up $788 million of that. Bitcoin again led the pack at $230 million, and Ethereum followed with $155 million. Highlighting the widespread market stress, other altcoins collectively lost $133 million, while Solana, XRP, and Dogecoin witnessed $61 million, $41 million, and $35 million, respectively. 

Macro factors trigger market turbulence

A Bloomberg report noted that Trump’s proposed tariffs, starting at 10% in February and rising to 25% in June, shook global markets. European leaders have pushed back, potentially halting last year’s trade agreement, while U.S. equity-index futures fell. Meanwhile, haven assets like gold and silver surged to record highs, signaling investor caution. 

Richard Galvin, Co-Founder of institutional investor DACM, said the crypto drop is “a risk-off move more than anything crypto-specific.” Earlier this year, Bitcoin had climbed close to $98,000, boosted by strong ETF inflows and a rebound after previously oversold conditions.

Market metrics and sentiment

As of writing, according to data from CoinMarketCap, Bitcoin was trading around $92,640, down about 2.5% over the past 24 hours. Ethereum dropped 3.35% to $3,201, while XRP fell 4.66% to $1.96. Overall, the total crypto market value slipped 2.7% to $3.13 trillion. At the same time, trading activity surged, with $101.44 billion trading in the last 24 hours—a jump of more than 69%.

The Fear and Greed Index sits at 45, showing that traders are feeling neither too nervous nor too greedy—basically, the market is neutral. Meanwhile, the Altcoin Season Index is 26, which means Bitcoin is currently outperforming most other cryptocurrencies. 

Bitcoin makes up 59.1% of the total crypto market, while Ethereum holds 12.3%, and all the other altcoins share the remaining 28.6%. Traders are very active in derivatives markets, with $659 billion tied up in perpetual contracts, far more than the $3.7 billion in futures.

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