In a dramatic turn of events, the cryptocurrency market has experienced its most severe liquidation day in history, with approximately $2.15 billion wiped out in a mere 24 hours. This unprecedented event surpasses previous calamities, including the infamous collapses of FTX and Terra (LUNA).
The turmoil was largely triggered by U.S. President Donald Trump’s recent announcement of significant tariffs on imports from Canada and Mexico, as well as a lesser tariff on China. The geopolitical climate has led to widespread panic among traders, causing Bitcoin to plummet to around $91,000 and Ethereum to drop over 20%, reaching lows of $2,500.
According to data from CoinGlass, the vast majority of liquidations—around $1.87 billion—stemmed from long positions as traders anticipated a bullish market that never materialized. Ethereum alone accounted for approximately $600 million in liquidations, while Bitcoin saw about $400 million wiped from its trading positions.
The cascading effect of these liquidations has not only affected major cryptocurrencies but also sent shockwaves through the altcoin market, with many assets experiencing declines between 15% and 30%. Over 730,000 traders faced forced liquidations during this tumultuous period.
Market analysts are warning that this may be just the beginning of a larger downturn. The combination of high leverage and negative sentiment suggests that traders should exercise caution in the coming days. As the dust settles, it remains to be seen whether this event will lead to a prolonged bear market or if a recovery is on the horizon.
