In the past 24 hours, the crypto market experienced a sharp correction as Bitcoin (BTC) fell below $104,000, resulting in more than $600 million in liquidated positions. This marks the highest level of liquidations since February, with approximately $688 million lost overall, 89% of which came from long positions, indicating an overwhelmingly bullish sentiment prior to the drop. The largest liquidation was a significant $12.25 million position of BTC/USDT on OKX, according to Coinglass data.
Bitcoin futures led the losses, totaling over $153 million, followed by Ethereum (ETH) with around $122 million in liquidations. Other affected cryptocurrencies included Solana (SOL) at approximately $33 million, XRP futures at $30 million, and Dogecoin (DOGE) with over $22 million in forced closures.
Market analyst Alex Kuptsikevich from FxPro noted the souring conditions stemmed from renewed trade tensions, particularly after U.S. President Donald Trump accused China of violating a trade agreement. This prompted Trump to double tariffs on steel and aluminum, heightening fears in global markets. As a significant exporter of steel, China’s response could have implications for various mineral markets and diplomatic relations.
The broader crypto market reflected this turmoil, with Ether dropping nearly 4%, XRP and Solana facing declines between 4% to 5%, and Dogecoin plunging over 8%. Data from Deribit indicated a 51% surge in open interest for Bitcoin futures since April, coupled with a 126% rise in options trading, showing greater investor interest in leveraged positions. Yet, major holders of Bitcoin, often referred to as whales, have shifted from accumulating coins to net selling, suggesting profit-taking behavior.
Such a wave of liquidations may signal market extremes and potentially foreshadow a price reversal, though the combination of escalated tariffs and uncertain trading conditions suggests traders should be prepared for ongoing volatility.
Bitcoin futures led the losses, totaling over $153 million, followed by Ethereum (ETH) with around $122 million in liquidations. Other affected cryptocurrencies included Solana (SOL) at approximately $33 million, XRP futures at $30 million, and Dogecoin (DOGE) with over $22 million in forced closures.
Market analyst Alex Kuptsikevich from FxPro noted the souring conditions stemmed from renewed trade tensions, particularly after U.S. President Donald Trump accused China of violating a trade agreement. This prompted Trump to double tariffs on steel and aluminum, heightening fears in global markets. As a significant exporter of steel, China’s response could have implications for various mineral markets and diplomatic relations.
The broader crypto market reflected this turmoil, with Ether dropping nearly 4%, XRP and Solana facing declines between 4% to 5%, and Dogecoin plunging over 8%. Data from Deribit indicated a 51% surge in open interest for Bitcoin futures since April, coupled with a 126% rise in options trading, showing greater investor interest in leveraged positions. Yet, major holders of Bitcoin, often referred to as whales, have shifted from accumulating coins to net selling, suggesting profit-taking behavior.
Such a wave of liquidations may signal market extremes and potentially foreshadow a price reversal, though the combination of escalated tariffs and uncertain trading conditions suggests traders should be prepared for ongoing volatility.
