The global digital assets market printed heavy red indexes on Monday. Crypto traders hit the sell button after Trump’s new tariffs rattled markets. Ether (ETH) took the biggest hit, dropping 27% to hit $2,300 levels in what has already become its worst intraday plunge since May 2021.
Bitcoin (BTC) price dropped by almost 7% to see the $92,000 zone while altcoins suffered even steeper declines. Traders hit the panic button, triggering massive crypto liquidations that have already exceeded the $2 billion mark.
The cumulative crypto market cap also dropped by 8% in the last 24 hours, losing around $500 billion to stand at $3.12 trillion.
$1.89 billion of long bets wiped out
As per data shared by Coinglass, more than 746k traders were liquidated as the market crashed drastically. Charts show the total liquidation (both long and short positions) is currently at $2.27 billion. The biggest liquidation order happened on Binance of ETH/BTC valued at $25.64 million.
Data shows that $1.89 billion of the liquidated bets (83%) turned out to be long bets. This suggests that traders were hoping the bullish sentiments sparked by the arrival of Donald Trump in the White House would persist.
Meanwhile, the fear and greed index flashes “fear” among the investors.
Liquidation data on crypto exchanges. Source: Coinglass Trump’s tariff threats are impacting the whole market as fears of trade wars and stagflation are weighing on risk assets, including the digital asset market.
The sell-off is a sharp reversal from the recent Trump-fueled rally. His pro-crypto stance, executive orders, and plans for a US crypto stockpile had previously buoyed sentiment.
Bitcoin bulls crushed
After posting a good run to hit the $109,000 milestone, Bitcoin has been under pressure from Fed meetings and announcements. BTC price has dropped by around 4% in the last 7 days and 8% in the past 60 days. Traders betting on the biggest crypto saw liquidations of over $418 million in the last 24 hours.
Bitcoin bulls hemorrhaged funds as $345 million (82%) of the total liquidated positions were long bets. BTC price is down by 4% in the last 24 hours. It is trading at an average price of $94.979 as of press time. Its 24-hour trading volume is up by a huge 178% to stand at $101.74 billion.
The second biggest crypto, Ethereum’s price nose-dived straight from the $3,100 zone to the $2,300 zone. ETH price took a massive hit to decline by 15% in the last 7 days and 27% over the past 30 days.
The last day saw $618 million worth of long and short bets set on its price action being liquidated as traders panicked. Around $480 million (77%) of all liquidated bets turns out to be long positions. Traders were expecting a further surge from above the $3,100 zone but Ether price dropped by 17% in the last 24 hours. ETH is trading at an average price of $2,596 as of press time.
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