The cryptocurrency market faced significant turbulence recently, with combined liquidations exceeding $840 million due to Bitcoin’s price drop below critical support levels and geopolitical tensions sparked by U.S. tariff proposals. Bitcoin, after reaching a peak of $111,970.17, fell below $109,000, fueling a severe market downturn that wiped out approximately $544.62 million in positions within 24 hours. Long traders bore the brunt of the losses, particularly on Bitcoin, where $402.25 million in long positions were liquidated. Ethereum also suffered heavily, with $137.67 million liquidated, mainly from long positions, while XRP faced significant declines and a $11.38 million total liquidation.
Separately, fresh uncertainty arose following former President Donald Trump’s announcement of new tariffs, including a 50% tariff on imports from the European Union and a 25% tariff on iPhones manufactured outside the U.S. This news led to an additional $300 million in liquidations across centralized exchanges over four hours. Bitcoin long positions accounted for $107 million, and Ethereum faced $87 million in liquidations. Smaller altcoins such as Solana, Dogecoin, and SUI also experienced multi-million dollar liquidations.
The price impact was compounded by a 32.19% drop in trading volume to $63.95 billion during the first event and a notable decline in XRP’s transactional activity amid fading institutional interest. Despite the setbacks, some market observers noted Bitcoin’s recent mini golden cross as a potential indicator for a rebound, offering cautious optimism for the leading asset’s recovery trajectory.