The crypto market just went through one of its worst days in history, with over $2.2 billion in liquidations—a bigger disaster than the collapses of FTX and Terra (LUNA).
What Happened?
Bitcoin and Ethereum prices took a major nosedive after news broke that President Trump is imposing new tariffs on Canada, Mexico, and China. The market reacted instantly, triggering panic selling and massive liquidations across the board.
- Bitcoin dropped to $91,200 before bouncing back slightly to $93,600, losing 6.5% in a single day.
- Ethereum was hit even harder, crashing 20% to $2,500.
- Most altcoins lost between 15% and 30% in just 24 hours.
Traders Got Wiped Out
This crash hit futures traders the hardest. According to CoinGlass, nearly $1.87 billion in long positions were liquidated as traders betting on higher prices got caught off guard. Short sellers, on the other hand, only faced about $345 million in liquidations.
- Ethereum traders suffered the most, with $600 million in ETH liquidations.
- Bitcoin traders lost $400 million, while other altcoins also saw heavy losses.
Why Did This Happen?
The crypto market was already shaky due to recent volatility. But when Bitcoin started falling, high leverage trades began liquidating, triggering a chain reaction of forced selling. The market simply couldn’t handle the pressure, leading to one of the fastest and most brutal crashes ever seen.
What’s Next?
Analysts are comparing this to the COVID crash of 2020 and are warning traders to stay cautious. Some experts are advising against “revenge trading” with leverage, saying now is a time for patience, not reckless bets.
For now, all eyes are on Bitcoin and Ethereum to see if they can stabilize—or if more pain is on the way.