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| Credit: Coinpedia |
Optimistic cryptocurrency traders suffered over $500 million in losses in the past 24 hours as the market was rattled by President Donald Trump’s renewed threats of sweeping tariffs on European imports and Apple products. The sudden escalation in trade war rhetoric triggered a wave of profit-taking and forced liquidations across the digital asset landscape, erasing recent gains and unsettling market sentiment.
Bitcoin, which had been trading near $111,000, swiftly dropped to around $108,600, wiping out its intraday profits and sparking broader declines across the crypto market. The downturn was mirrored in major altcoins, with futures contracts for Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) all posting significant losses. According to CoinGlass data, Bitcoin futures alone accounted for approximately $181 million in liquidations, while Ether futures saw nearly $142 million wiped out. Altcoins contributed another $100 million in forced liquidations, with SOL, DOGE, and XRP among the hardest hit.
The single largest liquidation was a $9 million BTC-USDT swap on the OKX exchange, underscoring the scale of leveraged bets that were unwound as prices fell. Liquidations occur when exchanges forcibly close traders’ positions due to insufficient margin, often amplifying volatility and signaling extreme market conditions.
This sharp reversal came just as Bitcoin was benefiting from strong ETF inflows and growing institutional interest, leading many to expect a relatively stable weekend. Instead, renewed macroeconomic uncertainty and fears of an escalating trade war have reintroduced volatility, prompting traders to brace for further turbulence in the coming days.
Market analysts warn that with global trade tensions once again in focus, crypto traders should expect heightened volatility and proceed with caution as the week unfolds.