- Over $870M in crypto positions were liquidated, mostly from long trades.
- Trump’s tariff announcement triggered a global risk-off reaction.
- High leverage amplified losses despite neutral overall market sentiment.
The Crypto market opened the week under pressure as a sharp sell-off swept through major digital assets during early Asian trading hours. More than $870 million in leveraged positions were wiped out in just 24 hours, catching bullish traders off guard and highlighting how quickly macro headlines can spill into crypto markets.
The trigger came from Washington. U.S. President Donald Trump announced a fresh round of tariffs targeting eight European countries, reviving trade war concerns and pushing investors into a defensive stance across global markets. Crypto, often seen as a risk asset during periods of uncertainty, was no exception.
Long Traders Bear the Brunt of the Sell-Off
Liquidation data shows that the damage was heavily one-sided. Long positions accounted for nearly 90% of the losses, as prices moved sharply lower before many traders could react. Short positions, by contrast, saw relatively modest losses.
Bitcoin led the shakeout, with more than $230 million in liquidations over the full day. Ethereum followed with roughly $155 million, while altcoins added to the pain. Solana, XRP, and Dogecoin each recorded tens of millions of dollars in forced liquidations, reflecting broad-based weakness rather than a single-asset event.
The speed of the decline suggests leverage was a major factor. As prices slipped, cascading liquidations accelerated the move, amplifying losses across exchanges.
Tariffs Fuel Broader Market Anxiety
The crypto drop mirrored moves in traditional markets. Trump’s tariff plan reportedly starts at 10% in February and rises to 25% by June, prompting fears of renewed trade tensions with Europe. U.S. equity futures turned lower, while traditional safe havens like gold and silver pushed to fresh record highs.
Institutional voices described the crypto pullback as part of a wider “risk-off” shift rather than a rejection of digital assets themselves. Earlier this year, Bitcoin had surged toward the $98,000 level, supported by strong ETF inflows and a rebound from oversold conditions. That rally left the market vulnerable to sudden macro shocks.
Market Data Signals High Activity, Neutral Sentiment
Despite the price drop, trading activity surged. Total crypto volume jumped more than 69% in 24 hours, signaling intense repositioning by traders. Bitcoin slipped roughly 2.5% to around $92,600, while Ethereum fell over 3%. The total crypto market value declined to about $3.13 trillion.
Sentiment indicators paint a mixed picture. The Fear and Greed Index sits in neutral territory, suggesting caution rather than panic. Meanwhile, Bitcoin dominance remains elevated, showing that capital is rotating away from smaller tokens during uncertainty.
Also Read: Gold Hits New Highs as Bitcoin Slides on Trump Tariff Shock
This latest wave of liquidations underscores how sensitive crypto remains to global policy shocks. While fundamentals like ETF demand and long-term adoption remain intact, leveraged traders are learning—once again—that macro headlines can quickly reset the market. For now, caution appears to be the dominant theme.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
