The cryptocurrency market has been rocked by one of its most severe liquidation events in history, with over $2.24 billion wiped out in the last 24 hours. Ethereum (ETH) bore the brunt of the sell-off, leading the charge with $617.35 million in liquidations, while Bitcoin (BTC) followed with $418.20 million. Other altcoins also suffered significant declines, contributing to a total of $441.18 million in liquidations across the market.
According to data from CoinGlass, the carnage triggered the liquidation of 746,711 traders, marking one of the most catastrophic wipeouts ever witnessed in the crypto space. The largest single liquidation order occurred on Binance’s ETH/BTC trading pair, amounting to $25.64 million.
Panic Spreads Across Major Exchanges
Massive liquidations were reported across major exchanges, with OKX leading the charge with $28.87 million in liquidations, followed by Binance at $27.22 million and Bybit at $11.45 million. The sell-off was driven by the panic of leveraged traders being forced to exit positions as the market rapidly declined.
Ethereum’s long positions took the heaviest hit, with $478.93 million in liquidations, while short traders lost $138.41 million. The scale of the crash has drawn comparisons to some of the worst market crashes in history, including the COVID-19 Black Thursday crash, the collapse of Terra (LUNA), and the demise of FTX.
Trump’s Tariffs Spark Fears of Global Trade War
The liquidation wave coincided with a controversial move by U.S. President Donald Trump, who announced new trade tariffs that are rattling global markets. Trump imposed a 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese goods, escalating concerns about a prolonged global trade war. As financial markets responded with turmoil, many investors quickly liquidated risk assets, including cryptocurrencies.
The global cryptocurrency market cap plummeted to $3.25 trillion, marking an 8.8% drop in just 24 hours. Bitcoin’s value slid sharply from over $105,000 on January 31 to $95,145, while Ethereum fell by 16%, now trading at $2,583.
Market Outlook: A Fragile Recovery Ahead?
With global trade tensions continuing to escalate, investors are growing increasingly cautious about the future of the cryptocurrency market. As concerns mount over a possible deepening trade war, there is uncertainty about whether Bitcoin can maintain its position above $90,000 or face even steeper losses.
Despite the steep declines, market analysts suggest that a shift in risk sentiment could potentially provide a path for recovery. However, the ongoing geopolitical uncertainty leaves cryptocurrencies vulnerable to further volatility, with many investors holding their breath as they await more clarity in the coming weeks.
As the market grapples with these challenges, traders and investors will continue to monitor developments closely, particularly the implications of global trade policies on the wider economy.
Also read: 5 solana rivals to turn $5k to $500k