Crypto Market Liquidation Event: $19B Wiped Out After Tariff Threat
Background: Trump’s Tariff Threat Sparks Crypto Sell-Off
The crypto market experienced a record-breaking liquidation event on Friday, following renewed trade tensions between the United States and China. Early in the day, U.S. President Donald Trump threatened to impose “massive” new tariffs on China, prompting heightened volatility across both stock and crypto markets. According to CryptoNews, the declines sharply accelerated after Trump reiterated his threats later in the afternoon via a post on Truth Social. Reporting via CryptoNews.
Bitcoin, the leading digital asset, dropped from above $121,000 to under $106,000 by Friday afternoon, as per data from CoinGecko. The price collapse was even more severe for key altcoins. Ethereum fell from $4,300 to under $3,600, reaching its lowest point in several months. Dogecoin and Cardano saw intraday declines of up to 40% before partially bouncing back. Lesser-known coins like Story (IP) and Worldcoin (WORLD) experienced losses exceeding 50% in just one hour.
Massive Liquidations Sweep Crypto Markets
The crypto market liquidation event led to a cascade of forced selloffs. According to CoinGlass, the total sum of liquidated positions exceeded $19 billion in a 24-hour span, a new historical high. Of these, nearly $17 billion were long positions, or bets that crypto prices would rise. In total, CoinGlass reported that 1,618,240 traders were liquidated in what it called “the largest liquidation event in crypto history.” CoinGlass stated on X: “In the past 24 hours, 1,618,240 traders were liquidated, with a total liquidation amount of $19.13 billion. The actual total is likely much higher—Binance only reports one liquidation order per second.”
This figure marks a significant escalation in market volatility, far surpassing previous events such as the $1.2 billion in liquidations during the 2020 COVID-19 financial shock and the $1.6 billion liquidated during the collapse of crypto exchange FTX in 2022.
The record liquidation event highlights the increased size and participation within cryptocurrency markets, but also accentuates the growing risk-taking behavior as digital assets reached all-time highs in recent weeks. Industry analysts indicated that the $19 billion number may actually understate the true scale, due to limitations in how liquidation data is gathered and reported.
Market Reaction and Outlook
By the end of Friday, crypto markets had partially recovered some ground but remained well below prior levels. As of this writing, Bitcoin is down almost 8% in the previous 24 hours, trading slightly above $112,000. Ethereum has seen a 12% daily decline to $3,816, while XRP is down 13% to $2.45. Dogecoin reported the largest loss among the top ten digital assets by market capitalization, dropping 24% in one day to $0.19. Solana also experienced an 18% loss, with its price tumbling to $183.
Market participants anticipate continued high volatility over the weekend. According to Myriad, a crypto prediction platform, there is a 56% probability that Bitcoin will experience more price declines—known as “red candles”—than upward moves before Monday. Reporting via CryptoNews.
What’s Next for the Crypto Market?
The record-breaking crypto market liquidation event has left many traders reassessing risk as macroeconomic uncertainty persists. With digital asset prices still well off their recent highs and global trade policy in flux, observers expect continued turbulence in the near term. For ongoing updates in the sector, visit Vizi’s cryptocurrency section.
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