TL;DR
- Trade War Turmoil: Escalating tensions between the US and China spurred crypto market panic, leading to nearly $1B in liquidations within just 24 hours.
- Major Cryptos Hit Hard: Bitcoin fell by 9%, and Ethereum dropped over 11%, severely impacting leveraged positions and triggering widespread losses.
- Market Cap Slumps: The global crypto market cap tumbled by approximately 9%, raising concerns about ongoing instability amid geopolitical pressures.
The crypto market has been rocked by a significant downturn as the trade war between the United States and China escalates. Fresh tariffs imposed by both nations have spurred widespread panic among investors, resulting in nearly $1 billion in liquidations within 24 hours. This sudden market crash has wiped out a substantial portion of the market’s value, leaving traders and investors in disarray.
Major Cryptocurrencies Hit Hard
Bitcoin and Ethereum, two of the leading cryptocurrencies, were among the hardest hit during this market turmoil. Bitcoin’s price plunged to around $83,300, dropping 9% causing traders holding long positions to incur losses exceeding $370 million in just 24 hours.
Similarly, Ethereum experienced a sharp decline, dropping its price from around $2,760 to around $2,000, losing over 11% in the last 24 hours and resulting in $190 million in liquidations.
Liquidations Across Exchanges
The majority of liquidations occurred on major crypto exchanges such as Binance, OKX, HTX, Bybit, and BitMEX. Binance, the largest crypto exchange by trading volume, recorded the highest number of liquidations.
While Bitfinex recorded the highest single liquidation order worth around $13 million. Traders on these platforms faced considerable losses as their leveraged positions were liquidated due to the steep decline in cryptocurrency prices.
Impact on the Global Crypto Market
The global crypto market cap saw a significant decrease, plummeting by nearly 9% in just 24 hours, settling at $2.76 trillion. This decline has raised concerns among investors about the stability of the market and the potential for further losses.
The rest of the main altcoins have also reported significant losses. BNB, SOL, XRP, and DOGE lost between 5% and 15%, trading at $568, $136, $2.37, and $0.1928, respectively. Cardano received the hardest hit, losing nearly 18% and trading at $0.8135.
Future Outlook
While the current market conditions are challenging, some analysts remain cautiously optimistic about the future of cryptocurrencies. They believe that the market downturn may be short-lived and that a potential recovery could be on the horizon.
The intensifying trade war between the United States and China has triggered a massive sell-off in the cryptocurrency market, resulting in over $1 billion in liquidations.
