The crypto market just witnessed one of its worst crashes ever, with over $2.24 billion wiped out in liquidations within a single day, even surpassing LUNA and FTX collapses. Bitcoin plunged to $94,000, dragging the entire market into chaos, and leaving leveraged traders in ruins. This brutal sell-off has shattered all previous records, marking a historic moment of destruction in the crypto space.
Ethereum traders were hit hardest, suffering $609 million in liquidations, while Bitcoin followed closely with $412 million. XRP, Dogecoin, and Solana also saw over $85 million in forced liquidations. The biggest single loss occurred on Binance, where an ETHBTC trade worth $25.64 million was liquidated. In total, a staggering 734,621 traders were wiped out in just 24 hours.
Altcoins Are in Free Fall
Having said, that, the situation for altcoins is even worse. Some are already down more than 80% from their peak, showing just how brutal this crash has been. The CMC Altcoin Season Index has fallen to 38 out of 100, meaning Bitcoin is now dominating the market, while traders are avoiding riskier altcoins.
For now, the crypto market is in a state of shock. If Bitcoin can stay above $92,000, there is hope for a recovery. But if it falls below this level, a further drop to $83,000 is possible, which could cause even more liquidation and fear. Crypto expert and investor, Crypto Michael expressed shock at the unprecedented altcoin crash, noting that many dropped 50% while Bitcoin remained relatively stable.
He compared the situation to the FTX crash, suggesting that something major may have happened behind the scenes. Despite the turmoil, he sees potential opportunities in the bloodbath and plans to look for profitable setups in the coming days.
Trump’s Tariffs: A Double-Edged Sword for Bitcoin
The market meltdown follows President Donald Trump’s decision to impose new tariffs on Canada, Mexico, and China. The 25% tariff on Canadian and Mexican imports, along with a 10% tariff on Chinese goods and Canadian energy, has sparked global economic concerns.
However, analysts argue that this could be beneficial for Bitcoin in the long run. Jeff Park from Bitwise Asset Management believes these tariffs could push Bitcoin higher. He links this to the Triffin dilemma, where the US dollar’s status as the global reserve currency creates trade imbalances.
Moreover, with a weaker dollar and declining interest rates, Bitcoin could emerge as a safe haven, attracting more investors amid economic instability. While the short-term impact has been brutal, some believe Bitcoin’s long-term prospects remain strong as they see this as an opportunity.
