Bitcoin experienced a significant drop from $83,000 to $74,000 overnight, resulting in over $1.36 billion in liquidations across digital asset markets, as reported by Coinglass. This sudden correction was attributed to escalating trade tensions, with President Donald Trump announcing extensive tariffs on major trading partners.
Over 441,000 traders were liquidated within 24 hours, with long positions contributing to $1.21 billion of the total. Bitcoin alone witnessed $401.31 million in long-side liquidations, while Ethereum saw $341.82 million. The largest single liquidation order, valued at $16.38 million, took place on Bitfinex’s perpetual contract. The top five assets affected by liquidation volume were BTC, ETH, SOL, XRP, and DOGE.
The market turmoil extended beyond digital assets, with the S&P 500 Futures Index ER dropping by 10% over the weekend. This decline followed consecutive daily losses exceeding 4% on Thursday and Friday, marking one of the steepest two-day declines in index history.
The liquidation heatmap highlighted concentrated pressure on Bitcoin and Ethereum, although altcoins like XRP, SOL, and DOGE also suffered significant losses. BTC’s price decreased by 10.25% in 24 hours, ETH fell by 19.84%, and most major altcoins recorded double-digit losses. The data indicated that the sell-off was predominantly long-heavy, with minimal short liquidations.
Despite Bitcoin’s recent strength, reaching above $109,000 in January after Trump’s reelection and inauguration, it has now retraced to levels last seen during Joe Biden’s term. Bitcoin currently faces a strong resistance level around $73,000, which some analysts believe could mark the local bottom of a sustained bull run. However, the global tensions and unforeseen tariffs have introduced a black swan event that defies traditional technical analysis.
As geopolitical uncertainties rise, digital asset markets are adjusting risk assessments in alignment with traditional equities. This shift underscores the interconnectedness of global events and their impact on financial markets.
